Wall Street Jedi
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions
  • News
  • Economy
  • Editor’s Pick
  • Investing
  • Stock
No Result
View All Result
  • News
  • Economy
  • Editor’s Pick
  • Investing
  • Stock
No Result
View All Result
Wall Street Jedi
No Result
View All Result
Home Investing

Gap stock soars 15% on guidance raise, solid third-quarter results

by
November 22, 2024
in Investing
0
Gap stock soars 15% on guidance raise, solid third-quarter results
0
SHARES
4
VIEWS
Share on FacebookShare on Twitter

Investing.com — Gap hiked its annual guidance and touted optimism ahead of the crucial holiday period following blowout third-quarter earnings underpinned by improved margins.

Gap Inc (NYSE:GAP) jumped more than 15% in premarket trading Friday. 

For the three months to Oct. 28, the San Francisco-based owner of brands like Athleta and Banana Republic reported earnings of $0.72 per diluted share on revenue of $3.8 billion. That compared with analysts’ estimates for EPS of $0.58 on revenue of $3.81B.   

Same-store sales increased by 3%, above estimates for a rise of 2.3%.

Gross margin jumped 140 basis points to 42.7% points versus last year’s gross margin.

Looking ahead, the retailer now expects 2024 net sales to be up between 1.5% to 2% from the prior year’s $14.9B, compared with a prior forecast for net sales to be up slightly. Gross margins were forecast to expand 220 basis points, up from a prior estimates of 200bps. 

Morgan Stanley (NYSE:MS) analysts reiterated an Overweight rating on Gap shares after the report and raised the price target to $30 from $29. 

“We leave the print with further conviction in brand reinvigoration execution, as well as near-term & long-term EPS upside potential – which we think can drive further valuation re-rating,” analysts led by Alex Straton. 

Separately, Jefferies analysts commented that Gap’s mix shift toward Old Navy and Athleta brands should bolster its margin structure. However, the investment firm cautions that “there are still risks around Old Navy maintaining its historical growth and margin rates, especially with growing competition.”

“We believe slowing trends at Old Navy (drives ~60% of revenue and even more of profit) will be a key focus among investors near term,” they added.

Alongside strong results, Gap also touted optimism ahead of the key holiday shopping season period.

“Holiday is off to a strong start and we remain focused on executing with excellence in the fourth quarter,” the company said.

Yasin Ebrahim contributed to this report. 

This post appeared first on investing.com
Previous Post

Treasury Secretary role, Bitcoin, European woes – what’s moving markets

Next Post

ECB’s Lagarde renews integration call as trade war looms

Next Post
ECB’s Lagarde renews integration call as trade war looms

ECB’s Lagarde renews integration call as trade war looms

  • Trending
  • Comments
  • Latest
American creating deepfakes targeting Harris works with Russian intel, documents show

American creating deepfakes targeting Harris works with Russian intel, documents show

October 23, 2024
Cadence raises midpoint of 2024 profit forecast on robust demand from chip designers

Cadence raises midpoint of 2024 profit forecast on robust demand from chip designers

October 28, 2024
Israel stocks lower at close of trade; TA 35 down 0.23%

Israel stocks lower at close of trade; TA 35 down 0.23%

October 6, 2024
Earnings call: Microsoft sees soaring cloud and AI growth in Q1 FY2025

Earnings call: Microsoft sees soaring cloud and AI growth in Q1 FY2025

October 31, 2024
Trump says national security concerns in Nippon-U.S. Steel deal can be resolved

Trump says national security concerns in Nippon-U.S. Steel deal can be resolved

0
Retailers scramble to move billions in cargo as East Coast dockworkers prepare to strike

Retailers scramble to move billions in cargo as East Coast dockworkers prepare to strike

0
PepsiCo to buy tortilla chip maker Siete Foods for $1.2 billion

PepsiCo to buy tortilla chip maker Siete Foods for $1.2 billion

0
East and Gulf coast ports shut down as thousands of workers go on strike

East and Gulf coast ports shut down as thousands of workers go on strike

0
Trump says national security concerns in Nippon-U.S. Steel deal can be resolved

Trump says national security concerns in Nippon-U.S. Steel deal can be resolved

June 15, 2025
Howard Schultz says he ‘did a cartwheel’ when Starbucks CEO Niccol coined ‘back to Starbucks’ strategy

Howard Schultz says he ‘did a cartwheel’ when Starbucks CEO Niccol coined ‘back to Starbucks’ strategy

June 12, 2025
U.S. online stores put up ‘out of stock’ signs as Nintendo Switch 2 sales hit record highs

U.S. online stores put up ‘out of stock’ signs as Nintendo Switch 2 sales hit record highs

June 12, 2025
U.S. online stores put ‘out of stock’ signs as Nintendo Switch 2 sales hit record highs

U.S. online stores put ‘out of stock’ signs as Nintendo Switch 2 sales hit record highs

June 11, 2025

Recent News

Trump says national security concerns in Nippon-U.S. Steel deal can be resolved

Trump says national security concerns in Nippon-U.S. Steel deal can be resolved

June 15, 2025
Howard Schultz says he ‘did a cartwheel’ when Starbucks CEO Niccol coined ‘back to Starbucks’ strategy

Howard Schultz says he ‘did a cartwheel’ when Starbucks CEO Niccol coined ‘back to Starbucks’ strategy

June 12, 2025
U.S. online stores put up ‘out of stock’ signs as Nintendo Switch 2 sales hit record highs

U.S. online stores put up ‘out of stock’ signs as Nintendo Switch 2 sales hit record highs

June 12, 2025
U.S. online stores put ‘out of stock’ signs as Nintendo Switch 2 sales hit record highs

U.S. online stores put ‘out of stock’ signs as Nintendo Switch 2 sales hit record highs

June 11, 2025

Disclaimer: WallStreetJedi.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions

Copyright © 2025 wallstreetjedi.com | All Rights Reserved

No Result
View All Result
  • News
  • Economy
  • Editor’s Pick
  • Investing
  • Stock

Copyright © 2025 wallstreetjedi.com | All Rights Reserved