Gap expects the negative impact of tariffs on the company's brands Banana Republic and Athleta to be up to 300 million dollars (approximately 2.9 billion kronor), reports news agency Bloomberg.
According to Gap, this does not affect the company's earnings forecast, and the management claims that there are strategies to handle more than half of the costs they see ahead as a result of the trade war with the world that President Donald Trump has initiated during the spring.
During the quarter that ended at the beginning of May, sales in Gap's comparable stores increased by 5 percent. For the Old Navy brand, the increase was 3 percent, while the sports brand Athleta was at minus 6 percent and Banana Republic at minus 3 percent.
In the near future, other retail chains in the USA have presented scattered reports, but the overall trend is that consumption in the USA has been dampened by the trade war.
American Eagle Outfitter has scrapped its full-year forecast due to macroeconomic uncertainty, whereas Abercrombie & Fitch has raised its sales forecast.
