Gap, Inc. (The)

GPS NYSE
GPS
Gap, Inc. (The) NYSE
 
Upcoming Earnings
EPS
Market Cap
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Upcoming Earnings
EPS
Market Cap
Div Yield
P/E

History of GPS

Important events

Nov 252021

Mind the Gap

Shares go down after Q3 earnings show headwinds from production delays.

  • Gap lost 24% on Wednesday to lows unseen since October 2020.
  • It dramatically missed on both ends with EPS of $0.27 on revenue of $3.94bn.
  • It air freighted 35% of its holiday inventory to get ahead of the delays, but the $450m in extra costs is putting pressure on gross margins.
  • It’s far from the only retailer feeling pressure. Walmart (WMT) and Target (TGT) both hired ships to get their inventory here in time for the holidays.
  • It’s expecting to lose $650m in sales on top for the full year after Vietnamese and U.S. port closures, and cut its revenue guidance by 10%.
  • Analysts are slashing targets all over the place, calling the earnings “disappointing across the board” and arguing its holiday product lineup is “mundane”.
Jose Fontano / Unsplash