Gap (GPS) Q2 Earnings Beat Estimates, Soft Comps Hurt Sales
Zacks Investment Research | Aug 22, 2019 10:40PM ET
The Gap Inc. (NYSE:GPS) reported mixed second-quarter fiscal 2019 results, wherein earnings surpassed the Zacks Consensus Estimate but sales missed. Both the top and bottom line declined on a year-over-year basis.
Following the dismal top-line performance, shares of Gap dipped 1.2% in the after-hours trading session on Aug 22. The quarter also witnessed soft comparable sales (comps), with a decline across all brands, as well as lower margins.
Nevertheless, management reaffirmed the adjusted earnings and comps outlook for fiscal 2019. Moreover, this Zacks Rank #3 (Hold) company is committed toward inventory and cost discipline to drive results in the back half of fiscal 2019.
Q2 Highlights
In the fiscal second quarter, Gap’s adjusted earnings of 63 cents per share outshined the Zacks Consensus Estimate of 52 cents. However, the bottom line declined nearly 17.1% from 76 cents registered a year ago. On a reported basis, the company delivered earnings of 44 cents per share.
The Gap, Inc. Price, Consensus and EPS Surprise
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