Gap Inc GPS shares popped in after-hours trading on Thursday after the company reported better-than-expected third-quarter financial results. Here's a look at the details.
What To Know: The Gap reported earnings of 59 cents per share, exceeding the analyst consensus estimate of 18 cents.
Quarterly sales of $3.767 billion beat The Street's estimate of $3.610 billion, a 7% decrease from sales of $4.039 billion in the same period of 2022.
It was also worth noting that online sales decreased 8% year-over-year, which comprised 38% of total net sales for the quarter. Additionally, store sales fell 6% as opposed to last year.
The Gap anticipated net sales to be flat to slightly negative in the fourth quarter, as opposed to $4.2 billion from the same period last year.
The company estimated that full-year 2023 net sales could decline in the mid to single-digit range, compared to $15.6 billion year-over-year.
"Gap Inc. delivered a solid performance in the third quarter. We were pleased to see market share gains as well as improvements in both gross margins and operating margins, demonstrating our ability to drive operating and financial discipline. This rigor has put the company on stronger financial footing and is enabling us to focus on reinvigorating our portfolio of brands, strengthening our operating platform, and reviving our culture for success," said Gap Inc. President and CEO Richard Dickson.
Related Link: Ross Stores Stock Gains On Solid Q3 Earnings, Raised FY23 Forecast
GPS Price Action: Shares of GPS were up 14.92% at $15.71 in the after-hours session at the time of publication Thursday, according to Benzinga Pro.
Photo: Michal Jarmoluk from Pixabay
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