Earlier this month, Gap announced the departure of its CEO
Art Peck and the appointment of Robert J. Fisher as the interim CEO. The
company also provided an update on its third quarter comp sales numbers and
earnings outlook. Gap said comparable sales for the third quarter of 2019 fell
4%, with declines across all three brands. Comp sales declined 7% at Gap
Global, 3% at Banana Republic Global and 4% at Old Navy Global.
The company stated that the quarter had been challenging with the results being dampened by macro impacts, slow traffic and product and operating pressures across key brands.
Also read: Gap Q2 2019 Earnings Conference Call Transcript
Gap has guided for third quarter 2019 reported EPS to be approx. $0.34-0.36 and adjusted EPS to be approx.
$0.50-0.52. For fiscal year 2019, reported EPS is expected to come in
the range of $1.38-1.47. The company reduced its FY19 adjusted EPS guidance to
a range of $1.70-1.75 versus the previous range of $2.05 to $2.15.
In the second quarter of 2019, Gap beat earnings estimates but revenues fell short of expectations. Sales decreased 2% to $4 billion while adjusted EPS amounted to $0.63. Comp-store sales were down 4%.
Shares of Gap have fallen 35% year-to-date. The majority of analysts have rated the stock as Hold and it has an average price target of $17.53.