Updated 11:06am EDT
Gap (GPS) -) shares ticked lower ahead of the casual-clothing retailer's second-quarter earnings report, due after the closing bell, which will also be paired with a similar update from upscale rival Nordstrom (JWN) -).
Retail earnings over the July quarter have been mixed, with value-focused companies like Walmart (WMT) -) topping Wall Street estimates and forecasting solid near-term gains, while those at the higher-end of the price scale have noted fading consumer demand heading into the autumn months.
Analysts expect Gap, which also operates the Old Navy and Banana Republic brands, to posted adjusted earnings of 9 cents a share for the three months ended in July, its fiscal second quarter, down around 50% from the year-earlier period.
Group revenue will likely hold up better, falling 7.5% to $3.57 billion, a move that likely reflects steep discounting in order to shift inventory built up earlier in the year.
Nordstrom is also likely to see earnings fall much faster than sales, with its bottom line forecast at 45 cents a share, down 44% from a year earlier, on revenue of $3.65 billion.
Both retailers are also likely to address the issue of theft, which hammered the prospects of big-box rival Target (TGT) -) last week. CEO Brian Cornell tallied the cost of organized crime that may lop as much as $500 million from its full-year profits.
Gap shares at last check were 0.5% lower at $9.61. Nordstrom shares, meanwhile, slipped 1.6% higher to $17.31 each.
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