Gap (NYSE:GAP) is gearing up to announce its quarterly earnings on Thursday, 2025-08-28. Here's a quick overview of what investors should know before the release.
Analysts are estimating that Gap will report an earnings per share (EPS) of $0.55.
Anticipation surrounds Gap's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.
New investors should understand that while earnings performance is important, market reactions are often driven by guidance.
Performance in Previous Earnings
The company's EPS beat by $0.06 in the last quarter, leading to a 20.18% drop in the share price on the following day.
Here's a look at Gap's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | 0.45 | 0.38 | 0.58 | 0.40 |
| EPS Actual | 0.51 | 0.54 | 0.72 | 0.54 |
| Price Change % | -20.0% | 19.0% | 13.0% | -2.0% |
Stock Performance
Shares of Gap were trading at $21.58 as of August 26. Over the last 52-week period, shares are down 3.18%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.
Analysts' Take on Gap
For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Gap.
The consensus rating for Gap is Neutral, derived from 12 analyst ratings. An average one-year price target of $25.0 implies a potential 15.85% upside.
Comparing Ratings with Peers
In this comparison, we explore the analyst ratings and average 1-year price targets of Urban Outfitters, Boot Barn Holdings and Abercrombie & Fitch, three prominent industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Neutral trajectory for Urban Outfitters, with an average 1-year price target of $78.0, suggesting a potential 261.45% upside.
- Analysts currently favor an Outperform trajectory for Boot Barn Holdings, with an average 1-year price target of $206.86, suggesting a potential 858.57% upside.
- Analysts currently favor an Outperform trajectory for Abercrombie & Fitch, with an average 1-year price target of $117.67, suggesting a potential 445.27% upside.
Overview of Peer Analysis
Within the peer analysis summary, vital metrics for Urban Outfitters, Boot Barn Holdings and Abercrombie & Fitch are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Gap | Neutral | 2.21% | $1.45B | 5.86% |
| Urban Outfitters | Neutral | 10.72% | $489.06M | 4.42% |
| Boot Barn Holdings | Outperform | 19.06% | $197.22M | 4.64% |
| Abercrombie & Fitch | Outperform | 7.50% | $680.18M | 6.37% |
Key Takeaway:
Gap is positioned in the middle among its peers for revenue growth. It ranks at the bottom for gross profit. In terms of return on equity, Gap is at the top compared to its peers.
All You Need to Know About Gap
Gap retails apparel, accessories, and personal-care products under the Gap, Old Navy, Banana Republic, and Athleta brands. Old Navy generates more than half of Gap's sales. The firm also operates e-commerce sites, outlet stores, and specialty stores under various Gap names. Gap operates approximately 2,500 stores in North America, Europe, and Asia and franchises about 1,000 more in Asia, Europe, Latin America, and other regions. Gap was founded in 1969 and is based in San Francisco.
Gap: Financial Performance Dissected
Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.
Revenue Growth: Gap displayed positive results in 3 months. As of 30 April, 2025, the company achieved a solid revenue growth rate of approximately 2.21%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Consumer Discretionary sector.
Net Margin: Gap's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 5.57% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): Gap's ROE excels beyond industry benchmarks, reaching 5.86%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): Gap's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.65%, the company showcases efficient use of assets and strong financial health.
Debt Management: Gap's debt-to-equity ratio surpasses industry norms, standing at 1.65. This suggests the company carries a substantial amount of debt, posing potential financial challenges.
To track all earnings releases for Gap visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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