03:47 PM EST, 11/04/2024 (MT Newswires) -- Gap (GAP) faces a fiscal Q3 earnings miss amid "lackluster" sales trends and an increase in promotions from the previous quarter, while full-year guidance probably will be unchanged, triggering a "negative catalyst" for the stock, UBS Securities said Monday in a report.

Earings in Q3 may be $0.54 a share, trailing the consensus by $0.03, after web traffic for Gap and Old Navy fell from a year earlier and Banana Republic and Athleta traffic declined from the previous quarter, UBS said.

Industry sales and store traffic data imply 3Q sales "fell to a level possibly below" the consensus 3Q projection, the report said.

"Gap and Banana Republic have some of the weakest sales growth figures relative to peers," UBS said. "Old Navy and Athleta have been struggling."

Results for Gap results are scheduled for Nov. 21.

UBS has a sell rating on Gap with a $14 price target.

Gap shares rose 4.5% in recent trading Monday.

Price: 21.67, Change: +0.93, Percent Change: +4.48