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Gap, Inc. (GPS) Tops Q1 EPS by 53c, Revenues Beat; Raises FY21 EPS Guidance Above Consensus

May 27, 2021 4:18 PM EDT

Gap, Inc. (NYSE: GPS) reported Q1 EPS of $0.48, $0.53 better than the analyst estimate of ($0.05). Revenue for the quarter came in at $3.99 billion versus the consensus estimate of $3.44 billion.

  • First quarter comparable sales increased 28% year-over year, and 13% versus 2019
  • Net sales of $4 billion were up 89% versus 2020 and up 8% compared to 2019 pre-COVID levels
  • Reported earnings per share for the quarter were $0.43, and $0.48 on an adjusted basis
  • Reported Operating Margin of 6.0% with Adjusted Operating Margin of 7.4%

“Our Power Plan 2023 is taking hold. Investments in demand-generation, coupled with macro tailwinds, supercharged our brands. Gap Inc. delivered sales growth of 8% over 2019 pre-COVID levels, with particular strength at Old Navy and Athleta, a healthy and growing Gap business in North America, and market share gains that outpaced the industry,” said Sonia Syngal, CEO, Gap Inc. “As stores traffic came back, we sustained our digital dominance with 82% online growth versus 2019. And while Active and Fleece continue to soar, we saw a resurgence in summer fashion with dresses rebounding, showing that customers are emerging from the crisis wanting to express their style without sacrificing the comfort and digital convenience they’ve become accustomed to. Through the power of our brands, platform and portfolio, we deliver it all.”

GUIDANCE:

Gap, Inc. sees FY2021 EPS of $1.60-$1.75, versus the consensus of $1.38.

The company raised its reported full-year diluted earnings per share guidance to be in the range of $1.55 to $1.70. Excluding charges associated with divestiture activity related to the Janie and Jack and Intermix businesses, full year earnings per share on an adjusted basis are expected to be in the range of $1.60 to $1.75. This outlook does not include potential impacts of our ongoing strategic review of the European business. In addition, the company continues to closely monitor the impact of COVID-related store closures globally, as well as challenges related to supply-chain and port congestion.

For earnings history and earnings-related data on Gap, Inc. (GPS) click here.



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