Gap: suspends dividend, withdraws guidance
(CercleFinance.com) - Gap said on Thursday that it is taking actions to further strengthen its financial liquidity and flexibility, including the suspension of its dividend for the remainder of the fiscal year.
The US fashion retailer is also drawing down the entire 500 million dollars of its revolving credit facility and reducing its capital expenditure by approximately 300 million dollars for the current fiscal year.
Given the uncertainty regarding the COVID-19 pandemic, Gap is also withdrawing its full year 2020 guidance and is not yet providing an updated outlook.
The shares were down over 10% on Friday morning on the New York Stock Exchange after these announcements.
On Thursday Moody's downgraded Gap's long-term rating to "Ba1," in the high-yield or "junk" category and changed its outlook to "negative".
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The US fashion retailer is also drawing down the entire 500 million dollars of its revolving credit facility and reducing its capital expenditure by approximately 300 million dollars for the current fiscal year.
Given the uncertainty regarding the COVID-19 pandemic, Gap is also withdrawing its full year 2020 guidance and is not yet providing an updated outlook.
The shares were down over 10% on Friday morning on the New York Stock Exchange after these announcements.
On Thursday Moody's downgraded Gap's long-term rating to "Ba1," in the high-yield or "junk" category and changed its outlook to "negative".
Copyright (c) 2020 CercleFinance.com. All rights reserved.