![Gap Inc. Reports Mixed Second-Quarter Results](https://www.investingapps.org/img/fd88d0f9-635d-418a-9c73-5ab1801ea053/news-article-12.jpeg?fm=jpg&q=80&fit=max&crop=1920%2C1080%2C0%2C0&w=1140)
Gap Inc. released its second-quarter results, showing sales slightly below expectations, causing the stock to fluctuate after hours. The company earned $117 million in the quarter, a significant improvement from the loss of $49 million in the same period last year. Adjusted for one-time items, the adjusted earnings per share came in at 34 cents.
Sales for the quarter fell by 8% to $3.55 billion due to the negative impact from a stronger dollar and Gap China. Comparable-store sales also declined by 6%. Analysts had anticipated an adjusted profit of 9 cents per share on sales of $3.58 billion.
CEO Richard Dickson expressed optimism about the company's progress: "We're witnessing encouraging signs as our teams streamline operations and prioritize growth-driving initiatives - a virtuous cycle that we intend to make our norm."
Looking ahead, Gap expects third-quarter net sales to drop to the low-double-digit range compared to last year's sales of $4.04 billion. It is worth noting that Gap China was sold to Baozun Inc. earlier this year, and its third-quarter 2022 net sales included approximately $70 million from Gap China.
Year-to-date, Gap's stock has experienced a 15% decline, in contrast to the S&P 500 index, which has seen gains of about 14%.
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