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
  • DJI26816.59319.891.21%
    NASDAQ8057.04106.261.34%
  • NIKKEI 22521798.87246.871.15%
    Hang Seng26540.48232.040.88%
    DAX12449.75-61.90-0.49%
  • USD (PER EUR)1.10-0.0028-0.25%
    USD (PER CHF)1.00-0.0004-0.04%
    JPY (PER USD)108.25-0.1100-0.10%
    GBP (PER USD)1.26-0.0051-0.40%