Seeking Alpha

The Gap, Inc. (GPS)

  • Thu, Aug. 20, 5:39 PM
    | Thu, Aug. 20, 5:39 PM | 1 Comment
  • Thu, Aug. 20, 4:17 PM
    • Gap (NYSE:GPS) came in with EPS in-line for Q2, but not without backing out $0.12 per share due to strategic actions.
    • Comparable sales growth by brand: Gap Global -6%, Banana Republic Global -4%, Old Navy Global +3%.
    • Gap notes it's continuing to invest to have an operating model which can deliver on-trend product. The restructuring will move Gap closer to some fast-fashion rivals.
    • Guidance: The company back previous full-year EPS guidance of $2.75-$2.80. Operating margin seen falling 1% in FY15.
    • Previously: Gap EPS in-line, misses on revenue
    • GPS -0.65% after hours to $33.44.
    | Thu, Aug. 20, 4:17 PM | 1 Comment
  • Thu, Aug. 20, 4:02 PM
    • Gap (NYSE:GPS): Q2 EPS of $0.64 in-line.
    • Revenue of $3.9B (-2.0% Y/Y) misses by $70M.
    • Press Release
    | Thu, Aug. 20, 4:02 PM | Comment!
  • Wed, Aug. 19, 5:35 PM
  • Thu, Aug. 13, 4:23 PM
    | Thu, Aug. 13, 4:23 PM | Comment!
  • Mon, Aug. 10, 4:06 PM
    • Gap (NYSE:GPS) reports comparable-store sales fell 3% in July.
    • Comp growth by brand: Gap Global -7%, Banana Republic Global -10%, Old Navy Global +3%.
    • Q2 comparable-store sales fell 2%.
    • The company says it expects Q2 EPS of $0.64-$0.64 vs. $0.66 consensus.
    • GPS flat in AH trading.
    | Mon, Aug. 10, 4:06 PM | Comment!
  • Mon, Aug. 10, 8:00 AM
    • Gap (NYSE:GPS) is downgraded by JPMorgan to an Underweight rating from Neutral.
    • The retailer faces more downside risk to market share loss due to new competition than upside potential, according to JP.
    • The investment firm slides it price target 28% lower to $29 from $40. Shares of Gap closed at $34.89 on Friday.
    | Mon, Aug. 10, 8:00 AM | Comment!
  • Fri, Jul. 31, 8:35 AM
    • Piper Jaffray fires off a price target reduction on Gap (NYSE:GPS) due to pricing checks.
    • The investment firm says Gap has dialed up promotional activity at Gap and Old Navy stores.
    • Piper sees FY16 EPS of $2.56 vs. Gap's guidance of $2.75-$2.80 and $2.77 consensus.
    • The new price target on Gap from Piper is $38 vs. yesterday's close of $36.05.
    | Fri, Jul. 31, 8:35 AM | Comment!
  • Thu, Jul. 23, 11:47 AM
    • Select retail stocks are outperforming the broad stock market and retail ETFs which are mostly pointing negative.
    • Retail outliers today include Lululemon (LULU +1.3%), Gap (GPS +1.7%), Kate Spade (KATE +2%), and Abercrombie & Fitch (NYSE:ANF) with a 1.1% gain.
    • Under Armour (UA +8.3%) is in a league all of its own after an earnings smash.
    • Previously: Strong growth across the board at Under Armour (Jul. 23 2015)
    | Thu, Jul. 23, 11:47 AM | 1 Comment
  • Tue, Jul. 14, 1:39 PM
    • The question of when millennials will open up their checkbooks and stop sharing is posed by Bobbi Rebell in a Reuters piece.
    • The generation seems to unabashedly share houses (AirBnb), cars (Uber), car rentals (Zipcar), and entertainment services (Netflix).
    • Some think millennials aren't wired to covet non-electronics possessions, while others attribute the trend to a tight market for recent college graduates with high student loan balances.
    • The authors of Millennial Majority argues the latter in making the case spending by millennials will pick up dramatically as their resources improve.
    • One sector desperately looking for a millennial bounce is apparel which continues to trail broad retail. Companies such as Gap (NYSE:GPS), L Brands (NYSE:LB), Abercrombie & Fitch (NYSE:ANF), and Ann (NYSE:ANN) have had a few misfires due to the peculiarity of the group.
    • The oldest millennials are now in their lower thirties which should mean the question will be answered soon.
    • Previously: Retail sales: No help from department stores (Jul. 14 2015)
    • Previously: June Retail Sales miss expectations (Jul. 14 2015)
    | Tue, Jul. 14, 1:39 PM | 17 Comments
  • Thu, Jul. 9, 4:12 PM
    • Gap (NYSE:GPS) reports comparable-store sales fell 1% in June.
    • Total sales were flat at $1.54B (+2% ex-currency).
    • Gap Global was weak again during the month with a -5% comp, while Old Navy Global and Banana Republic Global both turned a +1% comp.
    • Old Navy is the brand starting to run up against the tougher compares due its stronger track record over the last year.
    • GPS -0.1% after hours.
    | Thu, Jul. 9, 4:12 PM | Comment!
  • Fri, Jun. 19, 9:01 AM
    • Cowen Research projects shipping costs may be a slight margin drag for retailers for the upcoming holiday season.
    • Shippers have adjusted some pricing policies to reduce their logistics and weather risk.
    • Retailers also face heightened competition within the sector on free shipping policies.
    • Several major retail chains cited higher-than-expected shipping costs with their Q1 reports, due in part to the West Coast port slowdown.
    • Related stocks: GPS, LB, URBN, AEO, ANF, ARO, SPLS, ODP, DKS.
    | Fri, Jun. 19, 9:01 AM | Comment!
  • Wed, Jun. 17, 3:09 PM
    • A plan by Gap (NYSE:GPS) to close just over 25% of its namesake brand stores won't go far enough to revive the business, say analysts.
    • They think a shift in product assortment away from simple denim jeans and t-shirts to more dresses and feminine floral styles is needed.
    • Same-store sales have fallen six straight quarters for Gap Global.
    • Previously: Gap announces major round of store closings (June 15)
    | Wed, Jun. 17, 3:09 PM | Comment!
  • Tue, Jun. 16, 3:01 PM
    • Gap (GPS +1.1%) reiterated earnings guidance during an investor meeting today, although a series of charges tied to the firm's restructuring are now part of the equation.
    • Execs called product transitions and digital initiatives the company's top two priorities.
    • The description of the Product 3.0 plan sounds similar to a fast-fashion approach to retail.
    • A goal to "right-size" the Gap brand will lead to improved sale per square foot, promises management.
    • There's a frank assessment on Banana Republic which has been off trend over the last few quarters.
    • Gap Investor Day webcast
    • Previously: Gap announces major round of store closings (June 15)
    | Tue, Jun. 16, 3:01 PM | Comment!
  • Mon, Jun. 15, 4:11 PM
    • Gap (NYSE:GPS) announces a series of new initiatives after a top to bottom review by management.
    • The company plans to eliminate 175 stores in North America over the next few years with approximately 140 forecast to be shuttered this year.
    • Gap Outlet and Gap Factory Stores will not be included in the reduction plan.
    • 250 workers at Gap's headquarters will see their positions slashed.
    • The company estimates lost sales of $300M per year and one-time costs of $140M-$160M, including $55M-$75M in non-cash costs.
    • Savings benefits start to kick in during 2016 at $25M per year.
    • Gap's sales this year have been sluggish with the exception of the Old Navy brand.
    • GPS +0.8% after hours to $38.50.
    | Mon, Jun. 15, 4:11 PM | 8 Comments
  • Thu, Jun. 11, 8:48 AM
    • Clothing stores showed some signs of life in May as tipped in today's Retail Sales report.
    • The category was up 1.5% M/M and 3.6% Y/Y to outpace total retail sales.
    • The improvement is consistent is with the reads from the narrow range of apparel chains which still report monthly sales.
    • The sector has seen discounters show stronger traffic trends than mall-based chains, although both groups have eased off promotional activity a bit.
    • Previously: Retail sales stronger-than-expected in May
    | Thu, Jun. 11, 8:48 AM | Comment!
GPS vs. ETF Alternatives
Company Description
Gap Inc is an apparel retail company. It offers apparel, accessories, and personal care products for men, women, children and babies under the Gap, Old Navy, Banana Republic, Piperlime, Athleta, and Intermix brands.
Sector: Services
Industry: Apparel Stores
Country: United States