Financial News
Gap Earnings: What To Look For From GAP
Clothing and accessories retailer The Gap (NYSE:GAP) will be announcing earnings results tomorrow after market close. Here’s what to expect.
Gap beat analysts’ revenue expectations by 2.6% last quarter, reporting revenues of $3.72 billion, up 4.8% year on year. It was a stunning quarter for the company, with an impressive beat of analysts’ EPS and EBITDA estimates.
Is Gap a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Gap’s revenue to grow 1.1% year on year to $3.81 billion, a reversal from the 6.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.58 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Gap has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Gap’s peers in the apparel and footwear retail segment, only Boot Barn has reported results so far. It met analysts’ revenue estimates, delivering year-on-year sales growth of 13.7%. The stock was down 19.9% on the results.
Read our full analysis of Boot Barn’s earnings results here.Investors in the apparel and footwear retail segment have had steady hands going into earnings, with share prices flat over the last month. Gap is down 3.4% during the same time and is heading into earnings with an average analyst price target of $27.59 (compared to the current share price of $21).
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