Core Insights - Gap Inc.'s Old Navy returned to growth for the first time in over a year, with sales increasing by 6% to $2.29 billion during the holiday quarter, exceeding Wall Street expectations [1] - The overall gross margin for Gap surged by 5.3 percentage points to 38.9%, driven by fewer markdowns and lower input costs, surpassing the expected gross margin of 36% [1] - The company reported a net income of $185 million, or 49 cents per share, compared to a loss of $273 million, or 75 cents per share, a year earlier [1] Financial Performance - Gap's total revenue for the fourth fiscal quarter was $4.3 billion, slightly up by 1% from $4.24 billion a year earlier, aided by a 53rd week in fiscal 2023 [2] - Comparable sales were flat, while in-store sales rose by 4% and online sales decreased by 2%, accounting for 40% of total revenue [2] - The retailer reduced inventory by 16% during fiscal year 2023 and aims to maintain full-price selling [2] Strategic Direction - CEO Richard Dickson emphasized the need for Gap to regain its cultural relevance and move beyond being just a clothing retailer [3] - The company is cautious about its outlook, expecting flat sales in the current quarter and for the full year, amid an uncertain consumer environment [4] - Dickson highlighted the importance of innovative marketing and new product offerings to drive traffic and sales [5] Brand Performance - Old Navy's sales increased by 6% to $2.29 billion, with comparable sales up by 2%, outperforming estimates [8] - Gap's sales decreased by 5% to $1.01 billion, impacted by the sale of its China business, but comparable sales rose by 4% [9] - Banana Republic's sales fell by 2% to $567 million, while Athleta's sales declined by 4% to $419 million, with both brands facing challenges in regaining momentum [9] Leadership Changes - Gap appointed fashion designer Zac Posen as chief creative officer for Old Navy, aiming to enhance the brand's storytelling and cultural relevance [6] - The company has also made key executive hires, including Eric Chan as chief business and strategy officer and Amy Thompson as chief people officer [6] - Athleta's new CEO, Chris Blakeslee, has initiated a recovery strategy, leading to early successes in new product offerings [8]

Fourth Quarter Net Sales Increased with Market Share Gains Fourth Quarter Operating Margin Expansion Reflects Continued Financial and Operational Rigor  Full Year Operating Cash Flow of $1.5 Billion; Ended Fiscal Year with Cash Balance of $1.9 Billion SAN FRANCISCO, March 7, 2024 /PRNewswire/ -- Gap Inc. (NYSE: GPS), 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 ...

Gap Inc. Reports Fourth Quarter and Fiscal 2023 Results; Provides Fiscal 2024 Outlook Exhibit 99.1 Fourth Quarter Net Sales Increased with Market Share Gains Fourth Quarter Operating Margin Expansion Reflects Continued Financial and Operational Rigor Full Year Operating Cash Flow of $1.5 Billion; Ended Fiscal Year with Cash Balance of $1.9 Billion SAN FRANCISCO – March 7, 2024 – Gap Inc. (NYSE: GPS), the largest specialty apparel company in the U.S., with a portfolio of brands including Old Navy, Gap, Banan ...

Investors are always looking for stocks that are poised to beat at earnings season and The Gap, Inc. (GPS) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.That is because Gap is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good indicator of ...

LOS ANGELES and SAN FRANCISCO, March 5, 2024 /PRNewswire/ -- Gap Inc. (NYSE: GPS) and Ambercycle today announced efforts to leverage textile-to-textile recycled materials in Athleta products. Ambercycle's cycora® regenerated polyester is a high-performance material created from end-of-life textiles that seamlessly replaces conventional polyester. Starting in 2026, Athleta – a Certified B Corporation – plans to become the first performance apparel brand to use cycora® at scale.   Image courtesy of Athleta ...

The Gap, Inc. (GPS) is scheduled to report fourth-quarter fiscal 2023 results on Mar 7, after the closing bell.The Zacks Consensus Estimate for the fiscal fourth-quarter bottom line is pegged at 20 cents per share, suggesting 126.7% growth from the year-ago quarter’s actual. The consensus estimate for the fiscal quarter’s earnings has moved up by a penny in the past seven days. For revenues, the consensus mark is pegged at $4.21 billion, indicating a 0.7% drop from the year-ago quarter’s reported figure.In ...

Wall Street analysts expect Gap (GPS) to post quarterly earnings of $0.20 per share in its upcoming report, which indicates a year-over-year increase of 126.7%. Revenues are expected to be $4.21 billion, down 0.7% from the year-ago quarter.The consensus EPS estimate for the quarter has undergone an upward revision of 47.7% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Prior to a comp ...

"I've long admired Athleta for recognizing and authentically supporting female athletes' individual and collective strengths, and that's why I'm thrilled to partner with a brand that has values that align with mine. I'm looking forward to being part of something that inspires me on a personal level," said Ledecky. "Athleta has a history of supporting athletes holistically, which resonates with me. I'm more than my sport, and I know firsthand how harnessing the ethos of Athleta's Power of She platform can he ...

Wall Street expects a year-over-year increase in earnings on lower revenues when Gap (GPS) reports results for the quarter ended January 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on March 7, 2024, might help the stock move higher if these key numbers are better than expectations. ...

It is not surprising that prior to the start of every earnings season, investors look for stocks that can beat market expectations. This is because investors always try to position themselves ahead of time and look to tap stocks that are high quality in nature.In this regard, we ran a screener, which gave us Block (SQ) , Advanced Drainage Systems (WMS) , Wingstop (WING) , The Gap (GPS) and NVIDIA (NVDA) as the likely winners on their earnings beat potential.Why Is a Positive Earnings Surprise So Important?H ...