Citi analyst reiterates Sell rating on Gap stock ahead of earnings

Yahoo Finance's Brian Sozzi discusses a Citi analyst's rating on Gap stock.

Video Transcript

BRIAN SOZZI: OK, before we head to break, let's take a look at Gap into its earnings after the close on November 17. Citi analyst Paul Lejuez is sticking with a sell rating into the report, citing a host of concerns, ranging from a more cautious US consumer to the lack of a permanent CEO.

Says Lejuez, while we expect a sequential improvement in Old Navy same store sales, we believe 3Q was a tough quarter driven by a weak back to school, inconsistent product flows. We also expect management to take a cautious tone on the Old Navy business in 4Q, given the tough macro economy and unfavorable weather.