Categories AlphaGraphs, Retail

Gap Inc (NYSE: GPS) falls despite exceeding Q3 estimates

Gap Inc. (NYSE: GPS) reported its third quarter results, in which earnings slightly exceeded consensus views. Q3 revenue also surpassed estimates, while fiscal 2019 outlook was in line with expectations. The stock ended the day at $24.66, down 3.07% before hitting a new 52-week low of $24.25 during the regular trading session.

Gap Inc Q3 2018 earnings infograph

EPS of $0.69 exceeded the estimate of $0.68 and revenue of $4.09 billion, up 6.5%, beat the estimated figure of $4.01 billion.

Comp sales were flat compared to the 3% increase in last year, mainly due to a 7% decline in Gap brand comp sales versus positive 1% last year. Also, like the second quarter, Old Navy didn’t help the company to post strong sales.

“We are pleased to report continued solid performance from Old Navy, Banana Republic and Athleta leading into the important holiday season,” said Art Peck, CEO. He also added that the company is not satisfied with the performance of Gap brand.

Gap lowered the upper end of its 2018 EPS outlook. The company now expects earnings to be in the range of $2.55 to $2.60. Comparable sales are expected to be flat to up slightly.

Foot Locker (NYSE:FL) surpasses Q3 estimates, stock rallies

Gap targets to open about 25 company-operated stores, net of closures and repositions in the fiscal year 2018. In line with its strategy, the company expects store openings to be focused on Athleta and Old Navy locations, with closures weighted toward Gap brand and Banana Republic.

Gap’s peer Foot Locker (FL), which also reported its quarterly results after the bell, exceeded the estimates and the stock surged more than 10% in the after-hours trading.

Shares of Gap have lost 28% of its value in the year-to-date period and 18% in the past 52-weeks.

 

Follow our Google News edition to get the latest stock market, earnings, and financial news at your fingertips

 

Most Popular

FDX Earnings: FedEx Q1 adjusted earnings drop; revenue up 5%

Cargo giant FedEx Corporation (NYSE: FDX) Thursday reported a decline in first-quarter adjusted earnings, despite an increase in revenues. The company also provided guidance for fiscal 2023. Net income, adjusted

Key highlights from Darden Restaurants (DRI) Q1 2023 earnings results

Darden Restaurants, Inc. (NYSE:DRI) reported first quarter 2023 earnings results. Total sales increased 6.1% year-over-year to $2.4 billion, driven by blended same-restaurant sales growth of 4.2%. Net earnings amounted to

ACN Earnings: Key quarterly highlights from Accenture’s Q4 2022 financial results

Accenture (NYSE: ACN) reported fourth quarter 2022 earnings results today. Total revenues were $15.4 billion, up 15% year-over-year in US dollars and up 22.4% in local currency. Net income attributable

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top