Clothing and accessories retailer, The Gap, Inc. (GPS) has reported weaker-than-expected results for the third quarter ended October 30, 2021. A drop in net sales was primarily responsible for the muted results.
Following the disappointing earnings, shares of the company declined 16.2% to close at $19.70 in Tuesday’s extended trading session.
Revenue & Earnings
Gap reported quarterly net sales of $3.94 billion, down 1.3% from the same quarter last year. Moreover, the figure failed to surpass the consensus estimate of $4.47 billion. A year-over-year fall of 6.1% in net sales from the Old Navy Global segment contributed primarily to the overall dip in net sales.
The company reported quarterly earnings per share (EPS) of $0.27, which failed to surpass the consensus estimate of $0.51.
During the third quarter, the company repurchased 2.9 million shares for $73 million.
For the full year, the company expects EPS to be in the range of $1.25 to $1.40 per share. Also, it expects to witness a growth of 20% in net sales in the current fiscal year compared to the last.
The CEO of Gap, Sonia Syngal, said, “While we entered the third quarter with growing momentum, acute supply chain headwinds affected our ability to fully meet strong customer demand. Still, we made an intentional investment in building enduring customer loyalty with accelerated use of air freight to serve them this holiday, choosing long-term growth opportunity over near-term impact to profitability.”
See Insiders’ Hot Stocks on TipRanks >>
Consensus among analysts is a Hold based on 2 Buys and 6 Holds. The average Gap price target of $34.14 implies upside potential of 45.2% from current levels. Shares have declined 12.5% over the past year.
TipRanks Website Traffic
TipRanks’ Website Traffic Tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into Gap’s performance this quarter.
According to the tool, the website of Gap recorded a 22.12% monthly fall in global visits in October.
XPeng Delivers Outstanding Q3 Results; Shares Up
Netflix to Acquire Scanline
Enanta’s Q4 Loss Meets Expectations