...NEW YORK (Standard & Poor's) Aug. 21, 2015--Standard & Poor's Ratings Services said today that its rating and outlook on The Gap Inc. (###-/Stable/--) are unaffected by the company's recent report of a sales decline (2%) in the second quarter. The company affirmed its earnings guidance for the full year, excluding the impact from strategic actions (including closing 175 U.S. Gap stores) announced in June. We continue to expect flat to slightly declining revenue and modest EBITDA contraction of about 60 to 100 basis points for the fiscal year 2015. Gap Inc. reported that sequential same-store sales decline moderated in the quarter with a 6% decline at its Gap brand and a 4% decline at Banana Republic. This more than offset continued good performance from its Old Navy brand, which experienced 3% same-store sales growth. In June, the company also announced its plans to close about 15% of its U.S. Gap stores this year. We believe specialty apparel industry will remain difficult in 2015, given...
