-= Gap (GPS) reported earnings on Tue 24 Nov 2020 (a/h)

 

Gap appoints Asheesh Saksena as Chief Growth Officer; names Sandra Stangl as new CEO of Banana Republic

Gap reports Q3 results, beats on revs, comparable sales up 5%, assumes Q4 net sales will be equal to or slightly higher than last year 

Reports Q3 (Oct) GAAP earnings of $0.25 per share. The S&P Capital IQ Consensus is $0.33.

Revenues fell 0.1% year/year to $3.99 bln vs the $3.8 bln S&P Capital IQ Consensus.

Comparable sales were up 5%, driven by the strength of Gap's scaled e-commerce business, which was driven by a 61% increase in online sales.

• Old Navy Global net sales increased 15%, with comparable sales up 17%.
• Gap Global net sales were down 14% and comparable sales were down 5%.
• Banana Republic Global net sales were down 34%, a slight improvement versus the second quarter. Comparable sales were down 30%.

2020 Financial Outlook: Recognizing the continued high level of uncertainty in the marketplace, the company is not providing a fiscal year earnings outlook.

Holiday Shopping Season/Q4 assumptions: Behind the continued investment in digital capabilities, including the third quarter launch of its loyalty program, the company believes it is well-positioned heading into the holiday shopping season.General assumptions for the fourth quarter include:

• Net sales being equal to or slightly higher than last year.
• Gross margin rate being equal to last year, reflecting continued benefits of store closures largely offset by higher shipping expenses.