Gap Stock Slides On Q2 Earnings: Key Details From The Report

Gap Inc (NYSE:GAP) reported second-quarter financial results after the market close on Thursday. Here’s a rundown of the report.

• Q2 Revenue: $3.73 billion, in line with estimates

• Q2 EPS: 57 cents, versus estimates of 55 cents

GAP shares are retreating from recent levels. Get the complete analysis here.

Net sales were flat on a year-over-year basis as store sales fell 1% and online sales increased 3%. The company said comparable sales were up 1% year-over-year.

Gap generated $308 million in cash from operations and $127 million in free cash flow during the quarter. The company ended the period with $2.4 billion of cash, cash equivalents and short-term investments, up 13% year-over-year.

“In the second quarter, Gap Inc. overdelivered on profit expectations and achieved our topline goals. With positive comps for the sixth consecutive quarter, fueled by our three largest brands Old Navy, Gap and Banana Republic, it’s clear our strategy is working,” said Richard Dickson, president and CEO of Gap.

Outlook: Gap expects third-quarter revenue to be between $3.86 billion and $3.90 billion versus Benzinga Pro estimates of $3.91 billion. The company also affirmed its full-year revenue guidance of $15.25 billion to $15.40 billion versus estimates of $15.33 billion.

Gap’s earnings call for the second quarter started at 5 p.m. ET.

GAP Price Action: Gap shares were down 6.27% in after-hours, trading at $20.32 at the time of publication on Thursday, according to Benzinga Pro.

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