Gap (GPS) Q1 Earnings: What To Expect

Radek Strnad /
2024/05/29 3:02 am EDT

Clothing and accessories retailer The Gap (NYSE:GPS) will be announcing earnings results tomorrow after the bell. Here's what investors should know.

Gap beat analysts' revenue expectations by 1.7% last quarter, reporting revenues of $4.30 billion, up 1.3% year on year. It was a stunning quarter for the company, with an impressive beat of analysts' earnings estimates.

Is Gap a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Gap's revenue to be flat year on year at $3.29 billion, improving from the 5.8% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.15 per share.

Gap Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Gap has missed Wall Street's revenue estimates four times over the last two years.

Looking at Gap's peers in the apparel and footwear retail segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Urban Outfitters delivered year-on-year revenue growth of 7.8%, beating analysts' expectations by 1.8%, and Shoe Carnival reported revenues up 6.8%, topping estimates by 2%. Urban Outfitters traded down 4.5% following the results while Shoe Carnival was up 7.9%.

Read our full analysis of Urban Outfitters's results here and Shoe Carnival's results here.

There has been positive sentiment among investors in the apparel and footwear retail segment, with share prices up 9.3% on average over the last month. Gap's stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $22.1 (compared to the current share price of $20.41).

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