Gap Shoots Higher In After Hour Trading After A Solid Q4 Earnings Beat –


Gap Shoots Higher In After Hour Trading After A Solid Q4 Earnings Beat –

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.



Comments is not registered as an investment adviser with the U.S. Securities and Exchange Commission. Rather, relies upon the “publisher’s exclusion” from the definition of investment adviser as provided under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws.

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