Clothing and accessories retailer Gap (NYSE: GAP) will be announcing earnings results tomorrow after market hours. Here’s what to expect.
Gap beat analysts’ revenue expectations by 1.9% last quarter, reporting revenues of $4.15 billion, down 3.5% year on year. It was a very strong 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 be flat year on year at $3.42 billion, slowing from the 3.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.46 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 twice over the last two years.
Looking at Gap’s peers in the apparel and footwear retail segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Urban Outfitters delivered year-on-year revenue growth of 10.7%, beating analysts’ expectations by 2.5%, and Boot Barn reported revenues up 16.8%, falling short of estimates by 0.9%. Urban Outfitters traded up 23% following the results while Boot Barn was also up 16.5%.
Read our full analysis of Urban Outfitters’s results here and Boot Barn’s results here.
There has been positive sentiment among investors in the apparel and footwear retail segment, with share prices up 11.4% on average over the last month. Gap is up 30.5% during the same time and is heading into earnings with an average analyst price target of $27.57 (compared to the current share price of $28.40).
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.
