Gap's Wardrobe Malfunction: Analyst Unimpressed With Results As Brands Witness Double-Digit Declines
Portfolio Pulse from Nabaparna Bhattacharya
Gap Inc. reported Q1 revenue of $3.28 billion, missing estimates of $3.29 billion, but adjusted EPS of $0.01 beat estimates for a loss of $(0.16). Telsey Advisory Group analyst Dana Telsey reiterated a Market Perform rating and lowered the price target to $11 from $13. All three major brands witnessed lower sales, with double-digit declines at Gap, BR, and Athleta.
May 26, 2023 | 5:12 pm
News sentiment analysis
Sort by:
Ascending
NEUTRAL IMPACT
Gap Inc. missed Q1 revenue estimates but posted better-than-expected EPS. Telsey Advisory Group lowered the price target to $11 from $13, and all major brands reported lower sales.
Gap Inc. missed revenue estimates but beat EPS expectations, which could have mixed effects on the stock price. The lowered price target by Telsey Advisory Group and lower sales across all major brands may negatively impact the stock, but the better-than-expected EPS could provide some support. Therefore, the short-term impact is neutral.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100