Friday's Morning Movers: NFLX Upgrade, TTD Downgrade, GAP Misses Earnings

GAP Performance - GAP reported quarterly earnings that missed expectations on both revenue and earnings per share (EPS), with EPS at 45 cents, falling short by one cent [2] - Revenue was reported at $4.236 billion, slightly below the expected $4.244 billion, indicating a miss on both metrics [3] - The company attributed the disappointing results to historic winter storms that caused temporary store closures, negatively impacting holiday quarter traffic and comparable sales, particularly at Old Navy [4] Brand Performance - Old Navy, GAP's largest brand, saw sales increase by only 3%, which was below expectations, while overall comparable sales also rose by 3% [5] - The GAP brand itself performed better, with comparable sales up 7%, exceeding expectations, and the CEO noted that the brand is regaining cultural relevance [5][6] - Athleta, another brand under GAP, experienced a decline in sales, with an 11% drop and a 10% decrease in comparable sales, prompting a need to reset product strategy [7][8] Market Reaction - Following the earnings report, GAP's stock experienced a decline, which was compounded by broader market weakness, despite a prior increase of 6% before the announcement [7] - The overall retail sector has seen negative reactions post-earnings, with other retailers like AEO and Abercrombie & Fitch also facing similar pressures [9]