Gap’s Quarterly Earnings Accidentally Released Early, Shares Halted; Q2 Results Show Strong EPS and Revenue Beat
Shares of Gap Inc. (NYSE:GAP) were temporarily halted on Thursday morning following the apparent premature release of the company’s second-quarter earnings results. The apparel retailer was scheduled to officially announce its earnings after the market closed, but a presentation briefly appeared on Gap’s website earlier in the day, revealing the key financial figures.
According to the now-removed report, Gap posted Q2 earnings per share of $0.54, surpassing Street expectations by $0.13. The company reported revenue of $3.7 billion, reflecting a 5% year-over-year increase and beating the Street estimate of $3.63 billion.
The report also highlighted that Gap, which owns brands like Old Navy and Athleta, gained market share for the sixth consecutive quarter. Additionally, the company achieved a 500 basis point year-over-year expansion in gross margin and reported an operating margin of 7.9% for the quarter.
Furthermore, Gap raised its full-year guidance, now expecting gross margin to expand by approximately 200 basis points compared to 38.8% last year. The company also projected operating income growth in the mid to high 50% range, a significant increase from $606 million in the same quarter last year.
| Symbol | Price | %chg |
|---|---|---|
| 9983.T | 43810 | 4.93 |
| TRENT.NS | 4767.2 | 0 |
| TRENT.BO | 4763.15 | 0 |
| BABY.JK | 258 | 1.55 |
Gap Soars 14% on Strong Q4 Earnings Beat and Dividend Hike
Gap (NYSE:GAP) surged over 14% intra-day today after delivering fourth-quarter earnings and revenue that exceeded expectations. The apparel retailer also boosted investor confidence by announcing a 10% increase in its quarterly dividend.
For the quarter, Gap reported adjusted earnings per share (EPS) of $0.54, significantly outpacing analyst estimates of $0.36. Revenue reached $4.1 billion, slightly surpassing the consensus forecast of $4.07 billion. Comparable sales increased 3% year-over-year, reinforcing the company’s steady growth.
CEO Richard Dickson highlighted that Gap not only outperformed financial expectations but also gained market share for the eighth consecutive quarter.
For the full year 2024, Gap posted net sales of $15.1 billion, marking a 1% increase from the prior year. Comparable sales also rose 3%, while operating income surged over 80% year-over-year to $1.1 billion.
Looking ahead, the company projects net sales growth of 1% to 2% for fiscal 2025, with operating income expected to rise between 8% and 10%. For the first quarter of 2025, Gap anticipates flat to slightly positive sales growth compared to Q1 2024.
