Gap Reports Q2 Earnings Beat, Reaffirms Guidance

Gap Inc GPS reported a slight second-quarter sales miss after Thursday's bell.

Adjusted earnings came in at 63 cents per share, beating estimates by 10 cents. Sales came in at $4 billion, missing estimates by $20 million.

The company reaffirmed 2019 adjusted EPS guidance of $2.05-$2.15 compared to a $2.06 estimate.

"We are operating in a challenging environment, but I remain confident in the strength of our brands and our plans for the future as we work to launch two independent, public companies," said CEO Art Peck. "Heading into the second half of the year, we remain highly focused on inventory and expense discipline to improve results, as well as delivering exceptional product supported by powerful marketing to drive customer engagement."

Highlights

• Comp sales down 4%
• Old Navy comps -5%
• Gap comps -7%
• Banana Republic comps -3%

Gap's stock closed Thursday's session at $17.75 per share.