HomeFinancial MarketsGap Stock Jumps More Than 28% on Strong Earnings Result

Gap Stock Jumps More Than 28% on Strong Earnings Result

Clothing and accessories retailer Gap shared an impressive earnings report and raised its full-year guidance, causing its stock to surge 28.6%.

Gap reported 41 cents in earnings per share, while the analysts expected 14 cents. The revenue came at  $3.39 billion, significantly more than the estimated $3.29 billion. The company had a loss of 5 cents per share and revenue of $3.28 billion in the same period last year.

Comparable sales for all four of Gap’s major brands were up. Banana Republic had a 1% increase in comparable sales compared to an expected 4% decline, Athleta recorded a 5% jump, while Old Navy Gap saw an increase of 3% versus the 2.3% expected. Gap also beat the expected 2% gain and was 3% up in comparable sales.

Positive quarterly results prompted Gap to raise its full-year guidance. After previously expecting net sales to be flat, the company now predicts they will be “slightly” up. Additionally, there are estimates of 1.5 percentage points in gross margin growth compared to the previous guidance of 0.5 percentage points.

“We’re feeling very confident about our quarter, and it has given us the confidence to raise our guidance for full year 2024, both the outlook for revenue and operating margin,“ Gap’s CEO Richard Dickson told CNBC.

Adobe’s Stock Surges More Than 14% Percent On the Back of Record Revenue

Software company Adobe shared its report for the second quarter, which showed record revenue and earnings results that beat the expectations of analysts. The...

Cruise Stocks Drop Amid Worries About Their Pricing Power

Cruise companies Carnival, Norwegian Cruise, and Royal Caribbean all saw their stock take a significant dip on Friday after analysts expressed concerns about their...

U.S. Home Sales Approach Lowest Level in a Decade Amid All-Time High Prices

Prospective homebuyers in the United States continue to remain on the sidelines amid all-time high prices. Real estate brokerage Redfin recently released a report...