Gap Inc. (NYSE: GPS) is slated to report third quarter 2019 earnings results on Thursday, November 21, after the market closes. Analysts have forecast earnings of $0.51 per share on revenue of $3.96 billion.
The topline results are likely to be pulled down by weakness in its namesake brand and lower comparable store sales. Lower sales and margins are likely to impact the bottom line numbers. The company faces tough competition and has been reeling under several operating challenges which could dampen the third quarter results.
Earlier this month, Gap announced the departure of its CEO Art Peck and the appointment of Robert J. Fisher as the interim CEO. The company also provided an update on its third quarter comp sales numbers and earnings outlook. Gap said comparable sales for the third quarter of 2019 fell 4%, with declines across all three brands. Comp sales declined 7% at Gap Global, 3% at Banana Republic Global and 4% at Old Navy Global.
The company stated that the quarter had been challenging with the results being dampened by macro impacts, slow traffic and product and operating pressures across key brands.
Gap has guided for third quarter 2019 reported EPS to be approx. $0.34-0.36 and adjusted EPS to be approx. $0.50-0.52. For fiscal year 2019, reported EPS is expected to come in the range of $1.38-1.47. The company reduced its FY19 adjusted EPS guidance to a range of $1.70-1.75 versus the previous range of $2.05 to $2.15.
In the second quarter of 2019, Gap beat earnings estimates but revenues fell short of expectations. Sales decreased 2% to $4 billion while adjusted EPS amounted to $0.63. Comp-store sales were down 4%.
Shares of Gap have fallen 35% year-to-date. The majority of analysts have rated the stock as Hold and it has an average price target of $17.53.
Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a
PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the
With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,