Gap Missed Estimates by $0.04, Stock Fell after Hours
Total sales increased 10% YoY (year-over-year) to $3.78 billion, which was $172 million more than the consensus. Earnings per share rose 16.7% YoY to $0.44 but were below analysts’ expectations of a 27.8% YoY jump to $0.46. Analysts lowered Gap’s price target after the results, including Deutsche Bank (from $34 to $33), Jefferies (from $48 to $45), J.P. Morgan (from $30 to $29), and Credit Suisse (from $35 to $33).