The Gap, Inc. (NYSE:GAP) reported better-than-expected earnings for its second quarter and raised its outlook for FY24 gross margin.
Gap reported quarterly earnings of 72 cents per share, which beat the analyst consensus estimate of 57 cents. Quarterly revenue came in at $3.82 billion, which beat the consensus estimate of $3.81 billion and is an increase over sales of $3.76 billion from the same period last year.
"I'm proud that Gap Inc. delivered another successful quarter, growing net sales for the fourth consecutive quarter and gaining market share across all brands while meaningfully expanding operating margin," said Gap CEO Richard Dickson.
Gap raised its full-year outlook for net sales, gross margin and operating income growth compared to prior expectations. The company now sees net sales up 1.5% to 2%, gross margin growth of 220 basis points and operating income margin of mid-to-high 60%.
Gap shares gained 10.7% to trade at $24.41 on Friday.
These analysts made changes to their price targets on Gap following earnings announcement.
- B of A Securities maintained Gap with a Neutral and raised the price target from $25 to $28.
- Morgan Stanley analyst Alex Straton maintained Gap with an Overweight and raised the price target from $29 to $30.
- Barclays analyst Adrienne Yih maintained the stock with an Overweight and raised the price target from $31 to $32.
- Wells Fargo analyst Ike Boruchow maintained Gap with an Overweight and raised the price target from $28 to $30.
- Evercore ISI Group analyst Michael Binetti maintained the stock with an Outperform and increased the price target from $32 to $33.
- JP Morgan analyst Matthew Boss maintained Gap with a Neutral and boosted the price target from $26 to $28.
- BMO Capital analyst Simeon Siegel maintained Gap with a Market Perform and raised the price target from $23 to $25.
- Considering buying GAP stock? Here's what analysts think:
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