Gap’s Surprise Earnings Release Shows Strong Second Quarter

August 30, 2024 05:22 AM AEST | By EODHD

Google News:

Gap’s Surprise Earnings Release Shows Strong Second Quarter — Image source: Kalkine Media

Recent News

ASX Stocks Set to Open Lower as Global Markets Balance Optimism and Ca...

Macquarie (ASX:MQG) vs Coles (ASX:COL) – Which Shows Better Value in 2...

Cochlear and JB Hi-Fi Share Performance in 2025

Singular Health Group Expands Market Footprint with New ASX Securities...

(Bloomberg) -- Gap Inc. beat sales expectations for the second quarter, suggesting that an overhaul by new Chief Executive Officer Richard Dickson is working. Most Read from Bloomberg Turkey Plans Istanbul Taxi Surge to Tackle Complaints Intergenerational Housing Could Help Older Adults Combat Loneliness As Rural Hospitals Shutter Maternity Wards, Urban Ones Follow Dense Cities With Low Emissions Suffer Most From Air Pollution, Study Finds A Loud Warning From the Past About Living With Cars The company behind brands such as Old Navy and Athleta boosted net sales last quarter 5% to $3.7 billion. Gap also said that comparable sales were up 3%, surpassing analysts’ expectations. The company raised its gross margin and operating income guidance for the full year, citing the strong second quarter results.

Gap’s results were released on its investor relations website hours before its earnings were schedule to be released. The company said its announcement was supposed to be at 4:15 p.m. New York time, but a press release and presentation appeared on its website in the morning just before 9:15 a.m. A Gap spokesperson did not immediately respond to a request for comment. The retailer’s shares slipped 0.9% before being halted for news.

They had earlier jumped as much as 9.2%. The stock had gained 7.3% year to date as of Wednesday’s close. Gap shook up the company a year ago when it named Dickson CEO after he was credited with reviving toymaker Mattel Inc. and its Barbie brand. During his tenure, the retailer has leaned on celebrity marketing and revamped the executive ranks.

Comparable sales at Old Navy in the second quarter rose faster than Wall Street’s expectations. The namesake Gap brand also increased in the quarter, though below analysts’ projections, with the company saying that it continued to gain market share for a fifth straight quarter. Progress at Banana Republic and Athleta has been slower. Banana Republic’s comparable sales were flat, coming in below analysts’ estimates for a 1.6% gain, while Athleta’s sales fell 4% in line with expectations. (Updates with details throughout.) ©2024 Bloomberg L.P.

View comments

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (“Kalkine Media, we or us”), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary.
The content published on Kalkine Media also includes feeds sourced from third-party providers. Kalkine does not assert any ownership rights over the content provided by these third-party sources. The inclusion of such feeds on the Website is for informational purposes only. Kalkine does not guarantee the accuracy, completeness, or reliability of the content obtained from third-party feeds. Furthermore, Kalkine Media shall not be held liable for any errors, omissions, or inaccuracies in the content obtained from third-party feeds, nor for any damages or losses arising from the use of such content.
Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyrighted to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have made reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.
This disclaimer is subject to change without notice. Users are advised to review this disclaimer periodically for any updates or modifications.