Turnaround Continuation After Gap Earnings
Gap Inc. (NYSE: GPS) is out with its second quarter earnings report. The apparel retailer reported earnings of $243 million or $0.49 per share as sales increased by 6 percent to $3.58 billion. Estimates from Thomson Reuters were $0.48 EPS…
The company’s second quarter comparable sales increased by 4 percent and the earnings gains were 29% on net income and 40% in earnings per share. Guidance is being raised as well: “Given second quarter performance, the company has raised its estimate for fiscal year 2012 diluted earnings per share to be in the range of $1.95 to $2.00, compared with $1.56 in fiscal year 2011.” We would note that the Thomson Reuters figure projected for the year is $2.08 EPS.
Gap put its earnings beat based upon customers responding well to its product offerings in its multiple brands and the guidance is based on a focus of product and store execution driving positive momentum.
Gap shares closed down 4.6% at $33.01 on Thursday but shares are up over 3% more and close to $34.00 in the after-hours.
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
