Gap fends off retail apocalypse, climbs on earnings beat
Gap Inc.'s stock climbed 6% to $24.57 a share after the company reported first-quarter profit that beat analyst forecasts.
The adjusted gain for the period was $0.36 per share, exceeding consensus estimates of $0.29 per share. The clothing retailer also reported quarterly revenue of $3.44 billion, beating an analyst forecast of $3.39 billion. Further, same-store sales climbed 2%, while estimates called for a 0.2% contraction.
"We are pleased with our positive comp and earnings growth this quarter," president and CEO Art Peck said in a statement. "We've made substantial improvements in product quality and fit, and our increasing responsive capabilities are enabling us to better react to trends and demand."
It hasn't been pretty for brick-and-mortar shops. In addition to a rash of store closings, Sears is also battling dwindling inventory, while its CEO publicly battles one of the department store's biggest tool vendors. Macy's is shutting stores at a rapid clip. Even billionaire investor Warren Buffett has piled on.
A boost to Gap's stock will be welcome news for shareholders that have suffered through a 13% drop over the past week. The stock has slipped 24% since reaching an almost 14-month high on November 17.
Markets Insider
- I quit McKinsey after 1.5 years. I was making over $200k but my mental health was shattered.
- Some Tesla factory workers realized they were laid off when security scanned their badges and sent them back on shuttles, sources say
- I tutor the children of some of Dubai's richest people. One of them paid me $3,000 to do his homework.
- Bitcoin scam case: ED attaches assets worth over Rs 97 cr of Raj Kundra, Shilpa Shetty
- IREDA's GIFT City branch to give special foreign currency loans for green projects
- 8 Ultimate summer treks to experience in India in 2024
- Top 10 Must-visit places in Kashmir in 2024
- The Psychology of Impulse Buying