Gap, The Three Largest Brand, Has Been Pushed Into A Desperate Situation.

GapInc. group, the three largest brand, has been pushed into a desperate situation.

Moody sInvestorsService Moodie Investors Service Inc released a report on Thursday, sharply reducing the US retail sales outlook in 2016, from the previous 4.0%-5.0% sales growth to 2.0%-3.0%, while the rating has also been downgraded to a stable level.

Moody 's Moodie, vice president MickeyChadha, said the reduction was mainly due to the

Four industries, such as discount retailing, factory stores, department stores and office supplies stores, are extremely weak.

The key contributors to these industries include GapInc. (NYSE:GPS) cap Pu Group, Wal-MartStoresInc. (NYSE:WMT) WAL-MART, FootLockerInc. (NYSE:FL), Macy sInc. (NYSE:M) Messi general merchandise group, NordstromInc. (NYSE:JWN) Nodes Tron, NordstromInc. "(") "," corse department store ",", "," (")," (")", "," and "(") "and other large enterprises, and the above enterprises from the previous quarterly results are very bad, and profits are under tremendous pressure.

While reducing sales growth expectations, Moody 's Moodie also lowered US retail business profit growth forecast in 2016, down from the previous 5.0%-6.0% to 3.0%-4.0%.

At the same time, Moody 's Moodie said that although "Brexit off Europe" will not have a substantial impact on US retailers, it may impact consumer confidence and capital.

This indirectly affects consumer spending in the United States.

And because of the stronger exchange pressure of the US dollar, the profitability of international retailers such as GapInc., CoachInc., NYSE:COH and Abercrombie&FitchCo. (NYSE:ANF) will be further pressurized, and it will also reduce consumer spending in the US. Many retailers, including Macy 'sInc. Messi department store, have suffered.

According to data, the first quarter of April 30, 2016, the 2017 quarter of April 30, 2016, the world's largest retailer, Wal-MartStoresInc., recorded a net profit of $3 billion 80 million, or about $0.90 per share, compared with the same period last year, 3 billion 340 million dollars, or about 1.03 us dollars per share, down 7.8%. In the first quarter, the total income of Wal-MartStoresInc. WAL-MART was 115 billion 904 million US dollars, a 0.9% increase over the 1148.26 quarter of the first quarter of the fiscal year. As of the first quarter of April 30, 2016, the income of Macy 'sInc. Messi department store dropped to 7.4%, from the US dollar in the same period last year to the US dollar. As of the first quarter of April 30, 2016, the gross profit of GapInc. GAPP group was recorded in the US dollar, which fell sharply compared with the same period last year.

Moody s Moodie pointed out in the report that the weakest clothing and footwear category sales are expected to decline by 5.0%-6.0% in 2016, and the largest "bottle" is the largest clothing retailer GapInc. gupu group in the country. The proportion of the fast fashion group in this category is 18%. If the GapInc. cap group is left out, the sales of the American clothing and footwear retail market will have a low single digit growth in 2016. The better performing companies, such as the American underwear giant LBrandsInc. (NYSE:LB), will support the growth of this category.

As for the department store category, Moody 's Moodie is expected to perform worse, sales will drop by 8.0%-9.0% in 2016, and operating profit decline is expected to be as high as 14.0%-15.0%.

As the largest department store in the United States, Macy Messi sInc. Department blamed the weak performance in the first quarter earnings report, and the decline in passenger traffic has been a common cause of the department store industry in the past two years.

Discounted retail and factory store retail sales performed slightly better, but Moody 's Moodie forecast that sales in 2016 also declined by 1.5% and 2.5%, including large discounted department stores including TargetCorp. (NYSE:TGT) Taghit, CostcoWholesaleCorporation (NASDAQ:COST), and so on.

For the above retail category, especially the poor performance of the clothing category, Moody 's Moodie said that there has been little trend of red tide at the moment, and the trend of a wave of jeans and other waves has driven consumers to follow suit. In addition, the stable real estate market has allowed consumers to spend more money on property, household categories and clothing consumption. Most importantly, consumers have become accustomed to discounted consumption and will not return to full price stores to pay for full price products.

Although the retail industry is expected to be cautious in 2016, Moody 's Moodie said that with some department stores closing its unprofitable stores, as well as the supporting role of Amazon.comInc. (NASDAQ:AMZN) Amazon and the continued improvement of home and auto parts industry, the US retail market sales and operating profit in 2017 will grow by about 5%.