Gap Inc. Q1 Earnings Beat Estimates, Revenue $3.4B, Stock Surges 20%, Adjusted EPS $0.41, Gross Margin 41.2%

May 30, 2024, 08:24 PM

Gap Inc. reported strong Q1 results, exceeding expectations with a revenue of $3.4B, beating estimates of $3.3B. The adjusted EPS of $0.41 crushed estimates of $0.14. Gap's gross margin of 41.2% also surpassed the estimated 38.5%. The company's operating margin of 6.1% exceeded the expected 2%. As a result, Gap's stock surged by 20%, with shares popping 15% in late trading. The positive results have led Gap to raise its outlook for the full year, with CEO expressing confidence in raising sales and operating income guidance.