Gap Inc (NYSE:GPS) reported outstanding Q1 results leading to over a 15% surge in its aftermarket trading. The company managed to exceed estimates as they generated earnings per share (EPS) at $0.01 despite a revenue decline by about 6% as compared to last year; total revenue stood at $3.28 billion is just lower than the consensus estimate figure by $0.01 billion ($3.29 billion). Comparable sales declined by about 3%.
Image by Gerd Altmann from Pixabay
In stores and online, sales also experienced declines of about 4% and 9% respectively. The CFO at Gap Inc, Katrina O'Connell voiced her optimism for fiscal year billing out in 2023 despite ongoing uncertainties posed by the macro environment and consumer conditions. She is confident that the company is well positioned financially sound with improved cash flow compared to last year- with earnings per share set for expansion.
For Q2/22 Gap Inc anticipates net sales falling within the mid-high single-digit range during this period which will include almost $60 million in proceeds from Gap China's sale which was bought by Baozun (NASDAQ:BZUN).
It's worth mentioning that for the Fiscal year billing out in 2023, GAP Inc maintains its expectation of declining net sales within the low mid-single-digit range- inclusive of the extra week that is predicted to give a positive impact on net sales amounting to almost $150 million.
For Q2/22 Gap Inc anticipates net sales falling within the mid-high single-digit range during this period which will include almost $60 million in proceeds from Gap China's sale which was bought by Baozun (NASDAQ:BZUN).
It's worth mentioning that for the Fiscal year billing out in 2023, GAP Inc maintains its expectation of declining net sales within the low mid-single-digit range- inclusive of the extra week that is predicted to give a positive impact on net sales amounting to almost $150 million.