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

Infographic: Nvidia (NVDA) Q4 revenue up 61%; earnings beat

Nvidia Corporation (NASDAQ: NVDA) Wednesday said its fourth-quarter revenues and profit increased in double-digits amid elevated demand. The results also topped the Street view, driving the stock higher during the

Nutanix (NTNX) Earnings: 2Q21 Key Numbers

Nutanix (NASDAQ: NTNX) reported second quarter 2021 earnings results today. Total revenue remained flat at $346.4 million compared to the same period a year ago. GAAP net loss was $287.3

Macy’s (M) expects digital channels to generate approx. $10 billion in sales by 2023

Shares of Macy’s Inc. (NYSE: M) were down 2.7% in morning trade on Wednesday. The stock has gained 37% since the beginning of the year. A day ago, the retailer

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