Gap Shoots Higher In After Hour Trading After A Solid Q4 Earnings Beat – CWEB.com
Old Navy Global led the way again, with comparable sales up 9% during the quarter. Banana Republic turned in a +1% comp, while sales were flat for the Gap brand.
Gross margin was 33.7% of sales. Operating income was 7.2% of sales.
Looking ahead, Gap expects comparable sales to be flat to up slightly and EPS to fall in a range of $2.55 to $2.70.
Shares of Gap are up 7.22% AH to $33.99.
Gap, Inc. (NYSE:GPS) Q4 2017 Earnings Call March 1, 2018 5:00 PM ET
Tina Romani – Gap, Inc.
Arthur L. Peck – Gap, Inc.
Teri L. List-Stoll – Gap, Inc.
Randal J. Konik – Jefferies LLC
Matthew Robert Boss – JPMorgan Securities LLC
Ike Boruchow – Wells Fargo Securities LLC
Lorraine Corrine Hutchinson – Bank of America Merrill Lynch
Chethan Bhaskaran Mallela – Barclays Capital, Inc.
Oliver Chen – Cowen & Co. LLC
Brian Jay Tunick – RBC Capital Markets LLC
Shares are trading at a 50% discount to the overall market.
The dividend has grown an average 10.5% per year over the last six years.
GPS stock has rallied big recently.
Investors like the company’s long-term plan to optimize real estate and take costs out of the system.
Gap is a well-diversified apparel company that is showing clear signs of a turnaround after the negative performance of the last few years.
The stock is trading at cheap multiples, despite the recent positive performance and the expectations of a return to growth already next year.
The solid balance sheet, the healthy cash flows, the good dividend yield, the depressed multiples and the recent guidance are enough to place a bet on this turnaround play.
CWEB Analyst have initiated a Buy Rating for (NYSE:GPS ) and a Price Target of $60 within 12 months.