Gap's (GPS) Q1 Earnings Rise 40% Amid Strong Brand Sales
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Gap Inc. (NYSE: GPS) said Thursday that its first-quarter profit rose 40 percent as the company saw comparable store sales rise across all its brands.
The clothing retailer that operates Old Navy and Banana Republic along with its namesake stores reported quarterly earnings of $302 million or 45 cents per share, compared to $215 million or 31 cents per share a year earlier. Excluding one-time items, Gap earned 43 cents per share in the three month period ended May 1, in line with the market consensus.
Revenue for the company rose 6.4 percent to $3.33 billion, slightly ahead of the analyst forecast of $3.31 billion.
Same store sales across all brands for Gap increased 4 percent, including a jump of 7 percent at its Old Navy stores, as the company continues to focus on frugal customers with its lower priced selections.
“We got off to a great start this year by improving our top line and delivering significant earnings growth,” said Glenn Murphy, chairman and chief executive officer of Gap Inc. “Fueled by our strengthened economic model, we’re in a strong position to execute on our international and online strategic investments as we continue to build upon the momentum in North America.”
Looking ahead, the company raised its full-year earnings forecast from a range of $1.70 to $1.75 per share to a range of $1.77 to $1.82 per share, which is still below the Street’s expectation of $1.82 per share.
UPDATE: Click here to see some highlights from Gap's Q1 conference call.
The clothing retailer that operates Old Navy and Banana Republic along with its namesake stores reported quarterly earnings of $302 million or 45 cents per share, compared to $215 million or 31 cents per share a year earlier. Excluding one-time items, Gap earned 43 cents per share in the three month period ended May 1, in line with the market consensus.
Revenue for the company rose 6.4 percent to $3.33 billion, slightly ahead of the analyst forecast of $3.31 billion.
Same store sales across all brands for Gap increased 4 percent, including a jump of 7 percent at its Old Navy stores, as the company continues to focus on frugal customers with its lower priced selections.
“We got off to a great start this year by improving our top line and delivering significant earnings growth,” said Glenn Murphy, chairman and chief executive officer of Gap Inc. “Fueled by our strengthened economic model, we’re in a strong position to execute on our international and online strategic investments as we continue to build upon the momentum in North America.”
Looking ahead, the company raised its full-year earnings forecast from a range of $1.70 to $1.75 per share to a range of $1.77 to $1.82 per share, which is still below the Street’s expectation of $1.82 per share.
UPDATE: Click here to see some highlights from Gap's Q1 conference call.
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