Gap Inc. Reports Strong Q1 Results, Stock Surges 20%, Raises Full-Year Outlook

May 30, 2024, 08:24 PM

Gap Inc. reported better-than-expected first-quarter results, marking a positive turn for the apparel retailer under its new leadership. The company posted a revenue of $3.4 billion, surpassing the estimated $3.3 billion. Adjusted earnings per share (EPS) were $0.41, significantly higher than the expected $0.14. Additionally, Gap's gross margin improved to 41.2%, beating the estimate of 38.5%, and its operating margin reached 6.1%, compared to the anticipated 2%. The strong performance led Gap to raise its outlook for the full year. Sales growth was observed across all four brands, including Old Navy (+6.1%), Gap (+3.4%), Banana Republic (+2.4%), and Athleta (+2.9%). Total sales increased by 3.4%, with US total sales up by 5.2%. As a result, Gap's stock surged 20% following the earnings report.