Core Viewpoint - Gap Inc reported strong fourth-quarter results, exceeding analyst expectations, which led to a rally in its stock price [1][2]. Financial Performance - Gap's fourth-quarter earnings were 54 cents per share, surpassing the expected 37 cents per share, driven by strong performance across various metrics [2]. - The company's quarterly sales reached approximately $4.149 billion, exceeding expectations of about $4.070 billion [4]. - Same-store sales growth was 3%, significantly higher than the consensus estimate of 1.1% [2][4]. - Gross margins remained flat at 38.9% [2]. Management Guidance - Management guided for fiscal 2025 net sales growth of 1%-2%, aligning with the Street's expectation of 1.6% [3]. - Expected EBIT margins are projected at 7.9%, with earnings anticipated to be around $2.40 per share, which is 10% above the consensus of $2.17 per share [3]. - Operating income growth is expected to be between 8%-10%, higher than the consensus estimate of 7% [6]. Market Position and Strategy - The company is at an inflection point, aiming for low-to-mid single-digit sales growth and annual operating margin expansion targeting historical profitability levels of 8-10% [3]. - Gap is gaining market share in a challenging industry, with notable brand transformations in Gap and Old Navy contributing to increased cultural relevance and revenue growth [7]. - The company ended the quarter with approximately $2.6 billion in cash, with no current plans for deployment identified [5]. Analyst Ratings - JPMorgan maintained an Overweight rating and raised the price target from $29 to $30 [2]. - BMO Capital Markets reiterated a Market Perform rating with a price target of $25 [4]. - Telsey Advisory Group reaffirmed a Market Perform rating and set a price target of $26 [6]. Stock Performance - Following the earnings report, Gap's shares rose by 13.3% to $22.07 [7].

Core Insights - Gap reported revenue of $4.15 billion for the quarter ended January 2025, a decrease of 3.5% year-over-year, while EPS increased to $0.54 from $0.49 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $4.07 billion by 2.02%, and the EPS surpassed the consensus estimate of $0.36 by 50% [1] Financial Performance Metrics - Comparable store sales for Gap increased by 7%, significantly higher than the average estimate of 0.5% from five analysts [4] - Comparable store sales for Old Navy rose by 3%, compared to an estimated decline of 1.1% [4] - Comparable store sales for Banana Republic increased by 4%, exceeding the average estimate of a 1.8% decline [4] Store Locations and Sales - The total number of company-operated stores was 2,506, slightly below the average estimate of 2,535 [4] - Gap's global net sales totaled $980 million, surpassing the average estimate of $952.50 million, but reflecting a year-over-year decline of 2.7% [4] - Banana Republic's global net sales were $545 million, exceeding the estimate of $520.94 million, with a year-over-year decline of 3.9% [4] - Old Navy's global net sales reached $2.21 billion, slightly above the estimate of $2.17 billion, also showing a year-over-year decline of 3.3% [4] Stock Performance - Gap's shares have returned -11.9% over the past month, compared to a -3.5% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Points - The National Lung Health Alliance (NLHA) acknowledges the approval of Canada's $32.5 billion Big Tobacco settlement but warns that the funding is insufficient to cover the true costs of tobacco-related diseases and addiction in Canada [1][2] - Ontario alone spends $4.2 billion annually on tobacco-related healthcare and economic losses, while receiving a one-time payout of $7.1 billion from the settlement, highlighting the disparity between settlement funds and ongoing costs [2][6] - NLHA urges provincial governments to allocate settlement funds towards high-impact programs addressing health and addiction consequences of tobacco, including prevention, cessation, and research initiatives [4][3] Provincial Allocations and Responsibilities - The NLHA emphasizes the critical responsibility of provinces to spend settlement funds wisely, focusing on care for those harmed by nicotine addiction and investing in future healthcare improvements [3][4] - New Brunswick's higher-than-average smoking rates (16% compared to the national average of 11.7%) indicate that the settlement funds are insufficient to address the extensive damage caused by tobacco use in the province [4][5] Long-term Strategies and Health Initiatives - The Lung Health Foundation calls for Ontario to implement long-term strategies, such as a tobacco cost recovery fee, to ensure sustainable funding for healthcare related to tobacco use [6] - The settlement presents an opportunity to improve lung health through investments in lung cancer screening, early COPD diagnosis, respiratory care access, youth prevention initiatives, and smoking cessation programs [7][8][9] NLHA's Mission and Advocacy - The NLHA, led by the Lung Health Foundation, advocates for lung health through various member organizations, focusing on youth vaping, chronic lung disease support, and air quality improvements [10][11]

The apparel giant surpassed earnings expectations in fiscal Q4 2024 despite facing some sales challenges and macroeconomic headwinds.Gap (GAP -1.81%), operator of fashion-forward chains including Old Navy, Banana Republic, Athleta, and its eponymous Gap, released its fiscal fourth-quarter results on March 6. The standout metric in the report was earnings per share, which hit $0.54. That substantially beat Wall Street's prediction of $0.38. However, total revenue fell 3% year over year, landing at $4.15 bill ...

Core Insights - Gap reported quarterly earnings of $0.54 per share, exceeding the Zacks Consensus Estimate of $0.36 per share, and showing an increase from $0.49 per share a year ago, resulting in a 50% earnings surprise [1] - The company achieved revenues of $4.15 billion for the quarter ended January 2025, surpassing the Zacks Consensus Estimate by 2.02%, although this represents a decline from year-ago revenues of $4.3 billion [2] - Gap has consistently surpassed consensus EPS estimates over the last four quarters, indicating a positive trend in earnings performance [2] Earnings Outlook - The immediate price movement of Gap's stock will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - Current consensus EPS estimate for the upcoming quarter is $0.41 on revenues of $3.4 billion, while for the current fiscal year, the estimate is $2.14 on revenues of $15.28 billion [7] Industry Context - The Retail - Apparel and Shoes industry, to which Gap belongs, is currently ranked in the top 22% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

A shopper carries her early Black Friday purchases on Thanksgiving Day, November 28, 2024, at the Citadel Outlets shopping center in Los Angeles.Gap on Thursday posted another quarter that blew away expectations, indicating its turnaround under CEO Richard Dickson is working better – and faster – than Wall Street anticipated. Shares jumped 17% in extended trading Thursday.The apparel retailer behind Old Navy, Banana Republic, Athleta and its namesake banner beat expectations on the top and bottom lines duri ...

2024 net sales increased 1% versus last year with comparable sales up 3% Exhibit 99.1 Fourth Quarter Fiscal 2024 - Financial Results All four brands gained market share in the year Full year operating income of $1.1 billion grew over 80% versus last year Generated $1.5 billion in operating cash flow for the year SAN FRANCISCO – March 6, 2025 – Gap Inc. (NYSE: GAP), the largest specialty apparel company in the U.S., with a portfolio of brands including Old Navy, Gap, Banana Republic, and Athleta, today repor ...

2024 net sales increased 1% versus last year with comparable sales up 3%All four brands gained market share in the yearFull year operating income of $1.1 billion grew over 80% versus last yearGenerated $1.5 billion in operating cash flow for the yearSAN FRANCISCO, March 6, 2025 /PRNewswire/ -- Gap Inc. (NYSE: GAP), the largest specialty apparel company in the U.S., with a portfolio of brands including Old Navy, Gap, Banana Republic, and Athleta, today reported financial results for its fourth quarter and fi ...

Core Viewpoint - The Gap, Inc. is anticipated to report declines in both revenue and earnings for the fourth quarter of fiscal 2024, with earnings expected to be 36 cents per share, reflecting a 26.5% decrease year-over-year, while revenues are projected to rise by 5.4% to $4.1 billion [2][12]. Financial Performance Expectations - The Zacks Consensus Estimate for fourth-quarter earnings indicates a significant decline compared to the previous year, while revenue growth is expected [2]. - The company has shown a positive earnings surprise trend over the last four quarters, with an average surprise of 101.2% [3]. - The earnings whisper suggests a potential earnings beat, supported by an Earnings ESP of +11.55% and a Zacks Rank of 3 [4]. Strategic Initiatives - Management is focused on regaining market share and enhancing brand positioning through improved merchandise assortment, customer engagement, and digital commerce initiatives [5][21]. - The company has remodeled 15% of its stores and improved online shopping experiences, which are expected to contribute positively to performance [6]. Sales and Margin Outlook - Gap has raised its fiscal 2024 sales outlook, forecasting a growth of 1.5-2% on a 52-week basis, with fourth-quarter net sales growth expected to be between 1-2% [7]. - Improved margins are anticipated due to lower airfreight costs and effective cost management strategies, with gross margin expected to expand by at least 210 basis points year-over-year [8][10]. Valuation and Market Performance - The company's stock has increased by 17.7% over the past year, outperforming both the industry and the S&P 500 [13]. - Currently trading at a forward price-to-earnings ratio of 10.45X, Gap's shares are considered undervalued compared to the industry average of 17.94X, indicating a compelling investment opportunity [18]. Long-term Growth Potential - Gap's diverse brand portfolio, including Gap, Old Navy, Banana Republic, and Athleta, positions the company for sustained growth through effective cost management and customer engagement strategies [20][21]. - The company's strong fundamentals and strategic initiatives are expected to help it navigate retail challenges and maintain a positive long-term investment outlook [22][23].

Analysts on Wall Street project that Gap (GAP) will announce quarterly earnings of $0.36 per share in its forthcoming report, representing a decline of 26.5% year over year. Revenues are projected to reach $4.07 billion, declining 5.4% from the same quarter last year.The consensus EPS estimate for the quarter has been revised 1.5% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Pri ...