The stock of The Gap (GAP) is up 18% after the clothing retailer announced strong financial results and offered forward guidance that surpassed Wall Street’s targets.
The San Francisco-based company announced fourth-quarter 2024 earnings per share (EPS) of $0.54 U.S., which was far ahead of consensus expectations of $0.37 U.S.
Revenue in the period totaled $4.10 billion U.S., which topped the $4.07 billion U.S. expected on Wall Street, although sales were down 3% from a year earlier.
Management attributed the strong results to an ongoing turnaround strategy under CEO Richard Dickson that aims to reinvigorate the company’s brands that also include Old Navy and Banana Republic.
The Gap also attributed its positive print to strong execution on behalf of its retail network and sales during the year-end holidays.
In terms of guidance, The Gap said that it sees total sales rising between 1% to 2% this year. Wall Street had forecast a 1.7% increase in sales to $15.70 billion U.S.
The retailer also forecast operating income growth of 8% to 10% this year, which was ahead of analyst projections of 7% growth.
Before today (March 7), The GAP’s stock had declined 18% so far in 2025 to trade at $19.48 U.S. per share.
