Turnaround Continuation After Gap Earnings

Gap Inc. (NYSE: GPS) is out with its second quarter earnings report.  The apparel retailer reported earnings of $243 million or $0.49 per share as sales increased by 6 percent to $3.58 billion. Estimates from Thomson Reuters were $0.48 EPS and $3.53 billion in sales.

The company's second quarter comparable sales increased by 4 percent and the earnings gains were 29% on net income and 40% in earnings per share. Guidance is being raised as well: "Given second quarter performance, the company has raised its estimate for fiscal year 2012 diluted earnings per share to be in the range of $1.95 to $2.00, compared with $1.56 in fiscal year 2011."  We would note that the Thomson Reuters figure projected for the year is $2.08 EPS.

Gap put its earnings beat based upon customers responding well to its product offerings in its multiple brands and the guidance is based on a focus of product and store execution driving positive momentum.

Gap shares closed down 4.6% at $33.01 on Thursday but shares are up over 3% more and close to $34.00 in the after-hours.

JON C. OGG


Filed under: 24/7 Wall St. Wire, Apparel, Earnings, Retail Tagged: GPS
Read Full Story

Markets

DJIA 26,743.50 86.52 0.32%
NASDAQ 7,986.96 -41.28 -0.51%
NIKKEI 225 23,869.93 195.00 0.82%
HANG SENG 27,953.58 475.91 1.73%
DAX 12,430.88 104.40 0.85%
USD (per EUR) 1.18 0.00 0.01%
USD (per CHF) 0.96 0.00 0.02%
JPY (per USD) 112.56 0.01 0.00%
GBP (per USD) 1.31 0.00 0.01%