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Gap Reports Q4 Earnings Beat, CEO Warns Of Uncertainty

Gap (NYSE: GPS) shares are trading higher after the company reported better-than-expected fourth-quarter EPS and sales results.

Benzinga · 03/12/2020 20:41

Gap (NYSE: GPS) shares are trading higher after the company reported better-than-expected fourth-quarter EPS and sales results.

The company reported quarterly earnings of 58 cents per share, which beat the analyst consensus estimate of 41 cents by 41.46%. This is a 19.44% decrease over earnings of 72 cents per share from the same period last year.

The company reported quarterly sales of $4.674 billion, which beat the analyst consensus estimate of $4.55 billion by 2.73%. This is a 1.10% increase over sales of $4.623 billion the same period last year.

"Due to the evolving coronavirus situation, we are facing a period of uncertainty regarding the potential impact on both our supply chain and customer demand," said Sonia Syngal, CEO of Gap. "During our 50-year history, Gap, Inc. has weathered many storms. We will benefit from our strong balance sheet and cash generation as well as our important vendor relationships during this current challenging period. We are focusing on decisive actions that will ensure we emerge well positioned to compete in the years ahead, and I am impressed by how diligently the teams have navigated the events of the past weeks."

Gap shares were trading up 2% at $10.28 in Thursday's after-hours session. The stock has a 52-week high of $27 and a 52-week low of $9.35.