Why Gap Stock Rocketed Higher Today
Shares of Gap (NYSE: GPS) were up 30.4% as of 12:45 p.m. ET Friday after the apparel retailer announced stronger-than-expected quarterly results and slightly adjusted its full-year outlook for the better.
Gap's third-quarter 2023 net sales declined 7% year over year to $3.77 billion, translating to GAAP net income of $218 million, or $0.58 per share (down from $0.77 per share in the same year-ago period). Adjusted for one-time items like restructuring charges, Gap delivered non-GAAP earnings of $221 million, or $0.59 per share. Analysts, on average, were only expecting adjusted earnings of $0.20 per share on revenue of $3.61 billion.
Within Gap's top line, its Old Navy brand led the way with net sales declining 1% year over year to $2.13 billion, as the impact of store closures slightly more than offset a 1% increase in comparable-store sales. Gap brand sales were down 15% year over year to $887 million, including a similar 1% comparable-sales decline -- but Gap sales would have fallen a more modest 6% had it not been for the sale of Gap China and the shutdown of Yeezy Gap.
Source Fool.com
Gap Inc. Stock
Gap Inc. is currently one of the favorites of our community with 15 Buy predictions and no Sell predictions.
With a target price of 23 € there is a slightly positive potential of 11.57% for Gap Inc. compared to the current price of 20.62 €.
