The Declining Trend: Gap Forecasts Gloomy Sales, Despite Beating Q2 EPS Estimates
Portfolio Pulse from Shivani Kumaresan
Gap Inc (NYSE:GPS) reported a Q2 FY23 sales decline of 8% YoY to $3.55 billion, missing the analyst consensus of $3.57 billion. Online sales decreased 11% YoY and constituted 33% of total sales. Adjusted EPS of $0.34 beat the analyst consensus of $0.09. The company expects Q3 net sales to decrease in the low-double-digit range compared to last year's net sales of $4.04 billion. GPS shares closed lower by 1.24% at $9.53 on Thursday.
August 25, 2023 | 11:32 am
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NEGATIVE IMPACT
Gap Inc reported lower than expected Q2 FY23 sales and anticipates a decrease in Q3 net sales. Despite beating EPS estimates, the company's shares closed lower.
Gap Inc's lower than expected Q2 sales and anticipated decrease in Q3 sales indicate a negative trend for the company. Despite beating EPS estimates, this negative sales trend likely contributed to the decrease in the company's share price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100