Sales at Gap‘s largest brand Old Navy fell short of expectations during its fiscal first quarter, leading the retailer to cut its sales guidance on Thursday.

During the quarter, Old Navy’s comparable sales grew 1%, while analysts expected them to grow 3%, according to StreetAccount.

As a result, Gap cut its sales outlook and is now expecting companywide sales to grow between 1% and 2%, down from a prior range of between 2% and 3%.

Gap’s stock dropped more than 14% in extended trading following the results.

In an interview with CNBC, CEO Richard Dickson attributed the sluggish sales to a spring and summer assortment that failed to land with shoppers – not a larger macroeconomic issue. 

“It’s not a consumer issue,” said Dickson. “We’re winning with all income cohorts across low, middle, and high. When you have the right product at the right price value equation, customers are there, and our seasonal categories just got off to a weaker start.”

While Old Navy caters to lower- to middle-income shoppers, who have felt economic shocks like soaring gas prices more acutely than higher-income cohorts, those customers are still shopping — just in different categories.

Dickson said sales of Old Navy’s dresses and swimming shorts were particularly weak, while active, denim and kids categories were strong. He said the brand is working to boost sales with better price points and marketing and has seen trends start to improve.

Still, as Old Navy’s slowdown has persisted into the current quarter, the company is taking a “moderated view” of the year, Dickson said. Considering that the brand accounts for almost 60% of Gap’s overall revenue, any pressure on Old Navy impacts the entire company.

While Gap cut its sales outlook for the year, its profitability is another story. The company raised its guidance and is now expecting adjusted earnings per share to be between $2.30 and $2.40, compared with a prior range of between $2.20 and $2.35. 

Here’s how the specialty apparel company performed during the fiscal first quarter compared with what Wall Street was anticipating, based on a survey of analysts by LSEG:

• Earnings per share: 38 cents adjusted vs. 37 cents expected  
• Revenue: $3.50 billion vs. $3.52 billion expected

Sales rose to $3.50 billion, up slightly from $3.46 billion a year earlier. 

The company’s reported net income for the three-month period that ended May 2 was $339 million, or 90 cents per share, compared with $193 million, or 51 cents per share, a year earlier. Excluding one-time items related to a hefty legal settlement, Gap saw earnings per share of 38 cents. 

Chief Financial Officer Katrina O’Connell attributed the higher earnings forecast to tax rate favorability and interest income. The company is expecting an $80 million benefit from reduced tariff rates, but she said she didn’t factor that into the guidance and is instead reserving it. Half will be put aside to account for higher fuel prices, while the other half will be reserved in case the…

It was a bumpy week for gold and silver prices, which took a break from responding to geopolitical tensions to react to the latest US Federal Reserve interest rate decision.

As was widely expected, the central bank left rates unchanged at 3.5 to 3.75 percent. However, the move came with the highest number of dissents since 1992.

Gold finished the week at about US$4,615 per ounce, down from nearly US$4,700 at the start of the period; silver fared better, closing at US$75.27 per ounce, not far from where it began.

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Attracting more attention that rates was the Fed leadership transition. Jerome Powell’s term as chair expires on May 15, meaning that this week’s meeting was likely his last in the position.

While there’s been some uncertainty about whether nominee Kevin Warsh will be okayed to take over, this week he was voted through by the Senate Banking Committee. Now all that’s left is for the Senate to approve him. That’s expected to happen the week of May 11.

But even if that goes smoothly, Powell won’t be out of the picture quite yet.

He said this week that he plans to retain his position on the Fed’s board, marking the first time a chair has stayed on the board as a governor since 1948.

Powell’s decision stems from concerns about Fed independence. US President Donald Trump has been critical of the central bank, and Powell in particular, for not lowering rates as quickly as he would like — Trump has implied that Warsh will fall in line with what he wants.

Powell has also been facing a Department of Justice criminal investigation that he believes was motivated by rate decisions. Although it was dropped this week, he indicated that he won’t leave his Fed board position until it is “well and truly over with finality and transparency.”

These circumstances are raising questions about what Warsh will really be like as Fed chair, and the experts I spoke to this week were keen to share their thoughts.

Lynette Zang of Zang International said she’s skeptical about how much will change:

“I was listening to Kevin Warsh in front of the Senate Banking Committee, and he said that he had a different definition for price stability. And so my ears perked up, right? Because the current definition of central bank price stability is inflation moving slow enough that the public does not change their spending patterns. Rather, they simply take on more debt to attempt to sustain their standard of living.

“So when he said, ‘I have a different definition,’ I was very keen on, what is that definition? And what he said was, ‘That prices move slowly enough that people don’t notice.’ It seems like the same definition to me.”

Gareth Soloway of VerifiedInvesting.com also weighed in on comments Warsh has made, saying his thoughts on how to measure inflation are worrying:

“When he was testifying in front of Congress for his confirmation hearing, he (talked) about changing the way inflation is is monitored, or how the numbers come out. In other words, what he was saying is that what ……

Speaking to the Investing News Network, International Graphite (ASX:IG6,OTCPL:IGRPF) Managing Director Andrew Worland said nearly all graphite consumed in Europe is currently sourced from China.

“That’s where the opportunity is,” he said, noting strong interest from European customers seeking to diversify supply and International Graphite growing at 3 to 5 percent per annum.

International Graphite is targeting this gap through a joint venture with Alkeemia, which seeks to build a significant graphite-processing facility in Italy.

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Under the joint venture, Alkeemia will own 51 percent, while International Graphite will hold the remaining 49 percent. The companies will retain a 50/50 profit.

International Graphite is currently advancing technical and commercial workstreams, including site selection, infrastructure planning and capital cost estimates. It is also developing an economic model for the project.

Worland said the project will focus on processing graphite concentrate sourced from existing producers, rather than developing new mining operations.

Near-term milestones include securing commercial agreements by May, and reaching a final investment decision by June. International Graphite is also engaging with potential customers to establish offtake agreements to support development.

“We think we’ve got an incredible value. We’ve got a different approach than most of our graphite peers who are focused on mining primarily,” Worland added. “Our focus is very much on near-term cashflow, low-capital projects and efficient use of shareholder funds with a US$10 million to 12 million enterprise value at this point.”

The managing director said that more updates on these catalysts are expected over the next six to 12 weeks.

Watch the full interview with International Graphite Managing Director Andrew Worland above.

As the war in Iran disrupts oil and gas exports from the Gulf region, the Canadian energy sector could see a jump in demand — and federal officials are positioning Canada as a beacon of stability during an unpredictable moment.

Energy prices have soared since the U.S. and Israel launched a joint attack on Iran Saturday. Iran has warned tankers not to pass through The Strait of Hormuz, a crucial artery for a fifth of the world’s oil. Meanwhile, several energy companies have halted Gulf operations after their facilities were caught in the crossfire, and it’s unclear how long the conflict will continue.

Enter Canadian oil and gas, which doesn’t pass through the Middle East, has stronger environmental regulations than non-democratic oil producers Qatar and Russia, and is in closer proximity to Europe than energy heavyweights like the United States and Venezuela, with the latter now under U.S.-control.

“We heard previous to this weekend that the world wants more Canada,” said Energy and Natural Resources Minister Tim Hodgson during a global mining conference in Toronto this week.

“Our allies around the world see Canada as a stable, reliable, predictable, values-based producer of energy and critical minerals in a world where there are very few countries that meet all of those criteria.”

Whether Canada currently has the capacity to meet that demand is far less certain, according to experts and stakeholders who spoke with CBC News.

Canada’s energy sector can fill the gap to “a small degree,” said Tristan Goodman, president and CEO of the Explorers and Producers Association of Canada (EPAC). “Can it in any way contribute in a large or significantly meaningful way to what is being lost? The answer is no, it cannot today.”

Canada’s capacity

It shouldn’t come as a surprise that countries are knocking on Canada’s door for oil and gas, according to Renaud Brossard, vice-president at the Montreal Economic Institute, who listed Poland, Germany, Japan, South Korea and India as current and potential customers of the Canadian energy sector.

The U.S. has long been the primary buyer of Canadian oil and gas, but recent Statistics Canada figures indicate a shift, with Canada having supplied a record share of oil to non-U.S. countries last November.

With the price of crude oil now hovering around $80 US a barrel — a figure that is still historically low but could creep up, depending on the length of the conflict — European and Asian buyers may be looking to diversify or add redundancies to their oil and gas supply.

“The issue we have right now, actually, is that we lack the infrastructure to get our necessary…

Description:

A research report by MST Access highlights Kinetiko Energy (ASX:KKO) as an emerging participant in South Africa’s domestic gas sector, supported by a base-case valuation of AU$0.49 per share. The company’s project covers 5,366 sq km, located 200 km southeast of Johannesburg within an established infrastructure corridor near industrial users including Sasol facilities.

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Unlocking a World-Class Resource

MST Access recommences coverage with the valuation of A$0.490 per share, representing significant upside from current trading levels. This valuation is underpinned by Kinetiko’s 6.0 Tcf (2C) contingent resource—an energy equivalent of roughly one billion barrels of oil. Strategically located in the Mpumalanga province, these assets sit adjacent to the nation’s primary energy infrastructure, including major coal-fired power stations and Sasol’s Secunda plant.

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The report highlights recent production successes at the Brakfontein well cluster, where flow tests reached sustained rates of 188 Mscfd. Crucially, the gas produced has shown methane purity levels exceeding 98.5 percent . This exceptional quality allows for a “plug-and-play” approach with minimal processing, significantly reducing capital expenditure requirements.

Strategic Partnerships and Global Reach

Kinetiko’s transition toward commercialization is accelerated by two key pillars:

• Project Alpha: A binding Joint Development Agreement with FFS Refiners to co-develop a pilot LNG plant.
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To broaden its investor base, Kinetiko also recently commenced trading on the North American OTCQB Market (ticker: KKOBF). With a low-cost, “no-fracking” extraction model and a domestic market hungry for reliable energy, Kinetiko is uniquely positioned to deliver long-term value to shareholders while powering South Africa’s economic recovery.

MST Access notes that South Africa currently imports about 90 percent of its natural gas from Mozambique, with supply expected to cease mid-2027, creating a projected domestic supply gap. Kinetiko’s resource scale, testing performance, and defined development agreements are highlighted as key factors supporting long-term development potential.

Highlights of the Report

• Independent Resource Certification: 6.0 TCF 2C contingent gas resource, 5.8 TCF 2U prospective resource, 6.4 BCF reserves
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  • Well 271-KA03PT10: 3,522 Mscf total, 91 Mscfd average over 40 days
  • Well 271-KA03PT06: 4,432 Mscf total, 164 Mscfd average, 14-day average 162 Mscfd, peak 188 Mscfd
• Strategic Development Agreements:
  • FFS Refiners Phase 1a funding: ZAR64,312,000 (AU$5,675,000); LNG production: 5,000 tpa → 25,000 tpa → 125,000 tpa
  • IDC LNG build-out: 60 ktpa → 600 ktpa → 1,800 ktpa; Phase 1 cost: AU$138,000,000
• Infrastructure and Location Advantage
  • Project area: 5,366 sq km, 200 km…