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Gap Shares Plunge 13% on Disappointing Q1 Results and Revised Outlook -Breaking

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© Reuters. Gap Shares Fall 13% after Disappointing Q1Results and Revised Outlook

Gap, Inc. (GPS) shares dropped more than 13% after-hours following the company’s reported Q1 results, with EPS of ($0.44) coming in worse than the consensus estimate of ($0.11). The consensus estimate of $3.48 trillion was lower than the revenue, which fell 13% to $3.5 Billion.

Company updated 2022-year-end guidance in order to address the industry’s headwinds, Old Navy challenges and a slowerdown in China which are affecting Gap Brand.

According to company estimates, 2022 earnings per share will be between $0.30 and $0.60. This is in contrast to $0.43 consensus. The revenue range is expected to decrease by the low- to mid-single figures year-over.

According Katrina O’Connell, Executive Vice President and CFO of Gap Inc (NYSE:)., the company expects modest performance improvement in H2 and acceleration from the start of fiscal 2023.

By Davit Kirakosyan

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