The Gap, Inc. (NYSE: GPS)
When The Gap, Inc reported September sales earnings on Thursday October 6th, 2016 They stated that earnings results fell 3% company-wide. However, because analysts were expecting a 3.6% negative amount, shares actually rallied in the after market trading session. The shares climbed as high as $24.30 after the news was released. In the regular trading session shares closed at $22.78 which was up $0.25 on the day.
Full quarterly earnings are due November 7th after the market closes for regular Trading all eyes will be on this announcement as quarterly earnings have a greater impact on share price that same-store sales.
Fiscal year 2015 net sales were $15.8 billion. Gap Inc. products are available for purchase in more than 90 countries worldwide through about 3,300 company-operated stores, about 450 franchise stores, and e-commerce sites.
Behind The Scenes
It seems that two areas of the Gaps subdivisions hurt this quarter’s earnings. Sales at the Gap and at The Banana Republic fell considerably- this contrasts however with how their Old Navy line did. This is where the growth and profits picked up the slack.
A fire at Gap’s distribution center in Fishkill, New York, also is disrupting sales. The blaze, which struck in August, hurt comparable sales by about 3 percent in September. And the company expects a similar impact in October. The fire forced Gap to reroute deliveries and boost staff at other facilities.
Company Comments
“While we remain focused on performance across the portfolio, we are pleased to see a strong customer response to Old Navy’s product assortment,” Chief Financial Officer Sabrina Simmons said in the statement.-Bloomberg
Technical Analysis
As we can see from the price chart above, Traders and investors have not taken a firm stance in the direction that they think that shares will go in the long-term. The trend shows a choppy range which has narrowed as we have arrived at their earnings report. Shares have much room to go higher end or lower based upon price action going back to the beginning of 2016. Shares have traded in a 52-week range from $16.64 to $29.61. The short float, that is, the amount of shares that are sold short legally are roughly 16.65 % out of 217.29 Million in the float.
Company Profile
The Gap, Inc. operates as an apparel retail company worldwide. It offers apparel, accessories, and personal care products for men, women, and children under the Gap, Banana Republic, Old Navy, Athleta, and Intermix brands. The company provides apparel, eyewear, jewelry, shoes, handbags, and fragrances; and performance and lifestyle apparel for use in yoga, strength training, and running, as well as seasonal sports, including skiing and tennis. The Gap, Inc. offers its products through company-operated stores, franchise stores, Websites, e-commerce and social media sites, and catalogs. The company has franchise agreements with unaffiliated franchisees to operate Gap, Banana Republic, and Old Navy stores in Asia, Australia, Europe, Latin America, the Middle East, and Africa. As of August 11, 2016, it operated 3,300 company-operated stores and 450 franchise stores. The company was founded in 1969 and is headquartered in San Francisco, California.-Yahoofinance
