Gap (NYSE:GPS) surged in after-hours trading on Thursday after the retailer surprised to the upside with its holiday quarter earnings report and full-year guidance.
Gap (GPS) expects FY22 revenue growth to be in the low single-digit range after recovering from a negative month in Q1. EPS guidance for $1.85 to $2.05 is out ahead of the consensus mark of $1.75. GPS also expects to deliver operating margin of 6.3% to 6.8% on a reported basis and 6.0% to 6.5% on an adjusted basis for the fiscal year.
CEO update: "As our teams address near-term disruption from the acute headwinds that muted our fourth quarter performance, we are confident in our ability to execute against our long-term strategy, capitalizing on our investments in demand-generation, customer loyalty and artificial intelligence to accelerate profitable growth."