Gap's Financial Discipline Shines: Analyst Highlights Robust Inventory Control And Cost Savings For 2H23
Portfolio Pulse from Nabaparna Bhattacharya
Telsey Advisory Group analyst Dana Telsey reiterated the Market Perform rating on Gap, Inc. (NYSE:GPS) with an unchanged price target of $11. Telsey highlighted Gap's robust inventory control and cost management, expecting $150 million in annualized cost savings to be realized in 2H23. Gap's 2Q23 EPS is expected to be $0.05, down from $0.08 last year. Total sales are expected to decrease 6.4% YoY to $3.61 billion. Gap shares are currently trading higher by 2.02% to $10.35.
August 18, 2023 | 7:43 pm
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Gap, Inc. (NYSE:GPS) is expected to realize $150 million in annualized cost savings in 2H23 due to robust inventory control and cost management. However, its 2Q23 EPS is expected to decrease and total sales are expected to drop 6.4% YoY. Gap shares are currently trading higher.
The news is directly about Gap, Inc. and its financial performance. While the company's cost savings and inventory control are positive, the expected decrease in EPS and sales might negatively impact the stock. However, the stock is currently trading higher, indicating a neutral short-term impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100