Gap (GPS) Tops Q2 Expectations on Strong Comps; Now, About that Guidance...
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Price: $40.96 +0.91%
EPS Growth %: +65.9%
Financial Fact:
Weighted-average number of shares - basic: -974M
Today's EPS Names:
LBIX, ESEA, ISS, More
EPS Growth %: +65.9%
Financial Fact:
Weighted-average number of shares - basic: -974M
Today's EPS Names:
LBIX, ESEA, ISS, More
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The Gap Inc. (NYSE: GPS) shares are higher in late-trading Thursday following strong second-quarter results, but issued earnings expectations that might leave investors as blue as the denim it sells.
Net sales rose 5.6 percent to $3.58 billion in the quarter, from $3.39 billion in the same period last year. Comps rose 4 percent in the quarter.
Net income saw a 28.6 percent jump to $243 million, or 49 cents per share.
Numbers compare with Street expectations of $3.54 billion in sales and EPS of 48 cents.
On compes, Gap reported the following breakdown:
Despite the positive results, Gap can't seem to lift guidance enough for investors' liking. Last quarter, the retailer boosted its FY12 EPS outlook from $1.75 to $1.80 to a new range of $1.78 to $1.83 and the Street's view of $1.98.
Today, Gap raised that range to $1.95 to $2.00, shy of the $2.08 expected.
Shares are up about 0.5 percent in late trading.
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Net sales rose 5.6 percent to $3.58 billion in the quarter, from $3.39 billion in the same period last year. Comps rose 4 percent in the quarter.
Net income saw a 28.6 percent jump to $243 million, or 49 cents per share.
Numbers compare with Street expectations of $3.54 billion in sales and EPS of 48 cents.
On compes, Gap reported the following breakdown:
- Gap North America: positive 7 percent versus negative 3 percent last year;
- Banana Republic North America: positive 7 percent versus negative 2 percent last year;
- Old Navy North America: positive 3 percent versus flat last year; and
- International: negative 5 percent versus negative 4 percent last year
Despite the positive results, Gap can't seem to lift guidance enough for investors' liking. Last quarter, the retailer boosted its FY12 EPS outlook from $1.75 to $1.80 to a new range of $1.78 to $1.83 and the Street's view of $1.98.
Today, Gap raised that range to $1.95 to $2.00, shy of the $2.08 expected.
Shares are up about 0.5 percent in late trading.
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