Gap meets earnings estimates, backs outlook

Hole is preserving its fiscal-year revenue forecast unchanged after the retailer confirmed it continued to wrestle within the second quarter, with gross sales rising at its Previous Navy shops whereas enterprise at Hole and Banana Republic shops weakened.

In other news, Director Jorge P. Montoya sold 7,500 shares of the company’s stock in a transaction that occurred on Wednesday, June 17th. The stock’s 50 day moving average price is $36.43 and its 200-day moving average price is $39.34.

Net income fell 34 per cent to $219 million (€195 million), or 52 cents a share, from $332 million, or 75 cents, a year earlier. Therefore, we believe that if there’s going to be any improvement in Gap Inc’s performance, it won’t be visible before the 2016 spring collection launch. The 1-year stock price history is in the range of $33.55 – $46.85. For its worldwide business, the company surprisingly reported 6% decline in revenues (excluding Canada) due to flat growth in Asia and 15% decline in Gap revenues in Europe.

The firm also recently disclosed a quarterly dividend, which will be distributed on Wednesday, October 28th. Stockholders of record on Wednesday, October 7th will be issued a dividend of $0.23 per share. This represents a $0.92 dividend on an annualized basis and a dividend yield of 2.86%.

Piper Jaffray reiterated their Neutral stance on August 11, and decreased their price target from $38 to $33. As per the latest data, 1 analysts has given a sell rating on the shares of the company. The shares were sold at an average price of $38.25, for a total transaction of $286,875.00. The stock presently has an average rating of Hold and a consensus target price of $35.80. The ex-dividend date is Monday, October 5th. JPMorgan Chase & Co. reaffirmed a “neutral” rating and issued a $40.00 price target (down previously from $44.00) on shares of Gap in a research note on Saturday, May 9th.

Gap Inc. has struggled mightily to regain its status as a go-to brand for basics, failing to gain shoppers’ attention as it’s pivoted to more high-fashion looks. The Company offers clothes, accessories, and personal care products under Piperlime, Banana Republic, Old Navy, the Gap, Athleta and Intermix brands for men, women, and kids. Gap includes GapKids, babyGap, GapMaternity, GapBody and assortments that are GapFit. It also has franchise agreements with unaffiliated franchisees to operate Gap and Banana Republic stores.