Gap Issues Strong FY22 Outlook; Stock Up 17%

While reporting its fourth quarter results on Thursday, Gap, Inc. (GPS) issued an outlook for the full year 2022, which is expected to beat Wall Street view. Shares of the apparel retailer jumped over 17% in after-hours trading.

Looking forward to the fiscal year 2022, the company expects its earnings of $1.95 to $2.15 per share and adjusted earnings of $1.85 to $2.05 per share. The company expects fiscal year 2022 revenue growth to be in the low single-digit range versus fiscal year 2021 with first quarter net sales expected to be down mid to high-single digits versus the first quarter of 2021.

Analysts polled by Thomson Reuters currently estimate earnings of $1.86 per share on revenue growth of 1.60%.

GPS closed Thursday's trading at $14.25, down $0.32 or 2.20%, on the NYSE. The stock, however gained $2.49 or 17.47% in the after hours trading.

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Precision care innovator GE HealthCare Technologies, Inc., recently spun-off from General Electric Co., reported on Monday that profit for the fourth quarter declined from last year, reflecting higher interest and other financial charges. The company also initiated adjusted earnings guidance for the full-year 2023. Japanese auto major Toyota Motor Corp. has retained its title as the world's top selling automaker in fiscal 2022 for the third straight year, by selling around 10.5 million vehicles. The global sales were nearly flat with last year amid solid demand centered around Asia, while global production grew with increased capacity and production optimization in North America and Asia. Dutch consumer electronics giant Philips Electronics NV reported Monday a loss in its fourth quarter, compared to prior year's profit, even as sales increased. The company further declared a dividend, and said its order book remains strong. Going ahead, the company projects comparable sales growth in fiscal 2023, 2025, and beyond.
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