Gap, Inc. (NYSE:GAP) stock is trading higher on Friday after the company reported fourth-quarter earnings on Thursday.
What To Know: The company reported adjusted earnings per share of 54 cents, beating analysts’ estimate of 37 cents. In addition, revenyes of $4.10 billion, beat analyst estimates of $4.07 billion.
The company reported a 4% decline in store sales and a 2% drop in online sales compared to last year. However, comparable sales rose by 3%.
The company expects net sales for fiscal-year 2025 to increase by 1% to 2%. Furthermore, it anticipates net sales will be flat or rise slightly in the first quarter. Gap's outlook is based on the current macroeconomic environment and challenges to consumer spending, including inflationary pressures.
Analyst Changes: Following the earnings report, multiple analysts issued price target adjustments.
- Barclays analyst Adrienne Yih maintained an Overweight rating on Gap and raised the price target from $32 to $33.
- Baird maintained a Neutral rating on Gap and lowered the price target from $31 to $29.
- JP Morgan analyst Matthew Boss maintained an Overweight on Gap and raised the price target from $29 to $30.
Related Link: Stock Of The Day: Breakdown Or Reversal For CrowdStrike? (Updated)
GAP Price Action: At the time of writing, Gap stock is trading 13.4% higher at $22.09, according to data from Benzinga Pro.
Image: Courtesy of Gap, Inc.
