Gap Beats Sales, Profit Expectations but Narrows Guidance
November 20 2018 - 4:09PM
Dow Jones News
By Micah Maidenberg
Gap Inc. earned a profit of $266 million, or 69 cents a share,
during the third quarter, but the company said its same-store sales
were flat, dragged down by weakness in the flagship Gap brand.
Analysts polled by FactSet expected a profit of 67 cents a share
in earnings for the quarter.
Sales rose 7% in the third quarter to $4.09 billion, surpassing
the $3.99 billion analysts forecasted.
The retailer said same-store sales for Gap shops fell 7% in the
quarter, compared to a 1% gain last year. Old Navy same-store sales
were up 4%, the same as a year ago, and Banana Republic reported a
2% gain, better than last year's drop of 1%.
Gap lowered its full-fiscal year profit guidance Tuesday, saying
it now anticipates earnings of $2.55 a share to $2.60 a share,
compared to the previous guidance of $2.55 a share to $2.70 a
share.
The retailer also said it still believes comparable sales for
its fiscal year will be flat to slightly up during the year.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
November 20, 2018 16:54 ET (21:54 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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