Gap: Color on Feb sales
* RBC notes that given the slow start to spring and a comp trend which could remain negative throughout 1Q, they remain on the sidelines with respect to the shares.
Stifel notes that despite the weak sales in February, we believe inventory is well controlled; enabling Gap to start Spring with a clean and fresh assortment. The company's continued focus on improving the omnichannel shopping experience and offering trend-right assortment is anticipated to drive comp gains long term; Buy.
* FBR capital notes GPS announced a comp of -7% well below FBR and consensus estimates of +1.1%. Given the Easter shift from March LY into April TY and storms and cold weather that continued into March, they don't see comp stabilization as likely until April. They believe there could be another uptick in promos/clearance when new product begins to flow in late March/Early April, pressuring AURs. Full 2014 EPS guidance is likely still conservative and investors could discount the Feb SSS miss as a one-time weather event. They remain on the sidelines until they see margin stabilization or a more attractive entry point.
* Mizuho attributes the weakness to closures of 15% of stores on weather and the shift of Super Cash into Jan. According to Planalytics, ~50% of the U.S. was covered by snow in Feb, up 10% from LY and 20% from 2012. With Feb ~20-25% of 1Q sales, they believe clean inventories, trend-right product, and its nimble operating model bode well when Spring arrives (March will be impacted by Easter shifting into April this year). In addition, they continue to believe GPS presents attractive LT growth drivers including Athleta and Int'l.