Shares of the largest American clothing seller Gap collapsed by 23.31 percent – from 23.51 to 18.03 dollars during the bidding on the New York Stock Exchange.
At 18:20 Moscow time, they traded 18.21 dollars (minus 22.54 percent). Paper drops preceded the release of the report for the third quarter, which the company completed with a decrease in revenue for one percent.
net loss amounted to 152 million dollars. The missed income due to the limitations of supply chains are expected at the end of the year from 550 to 650 million dollars, writes CNBC.
The negative impact on the company’s financial indicators was closed due to the coronavirus of GAP plants in Vietnam, which produce about 30 percent of all products. The company was not able to satisfy the high demand for clothing after the weakening of the care restrictions. Another problem is a lack of labor. In addition, the retailer will have to spend 450 million dollars on air transportation to prevent delivery delays on overloaded ports.