© Reuters. Gap Shares Plunge 13% on Disappointing Q1 Results and Revised Outlook
Gap, Inc. (GPS) shares dropped more than 13% after-hours following the company’s reported Q1 results, with EPS of ($0.44) coming in worse than the consensus estimate of ($0.11). Revenue declined 13% year-over-year to $3.5 billion, compared to the consensus estimate of $3.48 billion.
The company updated its full 2022-year guidance to reflect the negative impacts of industry-wide headwinds, challenges at Old Navy, as well a slowdown in China that is impacting Gap Brand.
The company expects 2022 EPS to be in the range of $0.30-$0.60, compared to the consensus estimate of $0.43. Revenue is expected to decline in the low to mid-single digit range year-over-year.
According Katrina O’Connell, Executive Vice President and CFO of Gap Inc (NYSE:)., the company expects modest performance improvement in H2 and acceleration from the start of fiscal 2023.
By Davit Kirakosyan