When Gap Inc. (NYSE: GPS) reported first-quarter fiscal year 2017 results after markets closed Thursday, the clothing retailer posted diluted earnings per share (EPS) of $0.36 on revenues of $3.4 billion. In the same period a year ago, the company reported EPS of $0.32 on revenues of $3.44 billion. First-quarter results also compare to consensus estimates for EPS of $0.29 and $3.39 billion in revenues.
Same-store sales rose 2% in the first quarter, compared with a drop of 5% in the same period a year ago. By global division, Gap same-store sales fell 4% compared with a drop of 3% in the year-ago quarter; Banana Republic same-store sales fell 4% compared with a drop of 11% a year ago; and Old Navy comparable-store sales rose 8% this year compared with a drop of 6% last year.
During the quarter, Gap repurchased 4.2 million shares for about $100 million and will pay a dividend of $0.23 per share on approximately 396 million shares outstanding.
The company expects its store count at the end of this year to be about flat with last year, a change from an earlier projection that Gap would open about 40 new stores this year.
CEO Art Peck said:
While the retail environment continues to be challenging, we are focused on delivering the best possible product and customer experience, and our ability to leverage a portfolio of iconic brands and operating scale uniquely positions the company for long-term growth.
Gap’s report added a bit more good news to a day that saw retail giant Wal-Mart also post a good earnings report. The pain in retail appears to be greatest in department stores like Macy’s and Penney’s and specialty retailers aimed at younger consumers.
Gap reiterated EPS guidance of $1.95 to $2.05 for the fiscal year while updating its guidance for the first half of the year. The company said it expects first-half EPS to improve from a prior estimate of down in the high-single digits to down in the mid-single digits.
Analysts are looking for second-quarter EPS of $0.56 and revenues of $3.8 billion. For the full year, analysts have forecast EPS of $1.99 and revenues of $15.58 billion.
Shares traded up 4% in the after-hours market Thursday at $24.15 in a 52-week range of $17.00 to $30.74. The consensus target price for the shares was $25.00 before today’s report.
The #1 Thing to Do Before You Claim Social Security (Sponsor)
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.