Trading Concept
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
No Result
View All Result
Trading Concept
No Result
View All Result
Home Trading News

Gap shares crater after retailer sees millions in lost sales from delayed shipments, cuts forecast

by
November 23, 2021
in Trading News
0
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

RELATED POSTS

NBA and players reach a deal for a new 7-year labor agreement

D.E. Shaw spots an opportunity to boost margins at FleetCor – and do so amicably

A Gap store in New York, August 2, 2020.

Scott Mlyn | CNBC

Gap Inc. shares tumbled Tuesday after the company slashed its full-year outlook, with fiscal third-quarter results falling short as Covid-related factory closures led to significant product delays in the quarter.

Its stock was recently down 15% in extended trading on the news, having risen about 16% year to date.

“While we entered the third quarter with growing momentum, acute supply chain headwinds affected our ability to fully meet strong customer demand,” said Chief Executive Sonia Syngal in a press release.

Gap said it invested in air freight to help mitigate some of the port congestion challenges over the holidays. But that also means added expenses that will weigh on profits in the near term.

Here’s how Gap did in the three-month period ended Oct. 30 compared with what analysts were anticipating, using Refinitiv data:

Earnings per share: 27 cents adjusted vs. 50 cents expectedRevenue: $3.94 billion vs. $4.44 billion expected

Gap said it swung to a net loss of $152 million, or 40 cents per share, from net income of $95 million, or 25 cents a share, a year earlier.

Excluding items, it earned 27 cents per share, short of the 50 cents that analysts had been looking for, according to Refinitiv.

Revenue fell slightly to $3.94 billion from $3.99 billion a year earlier. That missed expectations for $4.44 billion.

Comparable sales at Old Navy fell 9% year over year and were up 6% compared with 2019. The company said this banner was disproportionately impacted by supply chain delays, particularly its women’s assortment.

At its namesake Gap brand, comparable sales rose 7% from a year earlier and were up 3% versus 2019.

At Banana Republic, which focuses more on selling work wear for women, comparable sales rose 28% from year-ago levels and fell 10% on a two-year basis.

Comparable sales at Athleta, Gap’s rival to Lululemon and Nike for women, increased 2% from a year earlier and rallied 41% versus 2019.

Gap now expects full-year revenue to be up about 20%, which is less that its prior outlook of about a 30% increase. Analysts polled by Refinitiv had been looking for a 28.4% year-over-year gain.

Gap’s expectations for adjusted full-year earnings have been lowered to a range of $1.25 to $1.40 per share, from a prior range of $2.10 to $2.25 a share. Analysts had expected Gap to earn $2.20 per share, Refinitiv said.

Gap said its revised outlook takes into account roughly $550 million to $650 million of lost sales from supply chain constraints and about $450 million in air freight costs for the year.

Find the full earnings release from Gap here.

This story is developing. Please check back for updates.

ShareTweetPin

Related Posts

NBA and players reach a deal for a new 7-year labor agreement

by
April 1, 2023
0

NBA Commissioner Adam Silver speaks to the media during a press conference as part of the 2022 All-Star Weekend at...

D.E. Shaw spots an opportunity to boost margins at FleetCor – and do so amicably

by
April 1, 2023
0

In this article FLT Follow your favorite stocksCREATE FREE ACCOUNT Djelics | E+ | Getty Images Company: FleetCor Technologies (FLT)...

At least 21 are dead after tornadoes rake the U.S. Midwest and South

by
April 1, 2023
0

A car is upturned in a Kroger parking lot after a severe storm swept through Little Rock, Ark., Friday, March...

ETF outlook: Why Wall Street strategists aren’t chasing a growth stock trade just yet

by
April 1, 2023
0

The rally in growth and tech stocks in the first quarter caught much of Wall Street off-guard, but many ETF...

On the cusp of record inflows? Playing the hot international trade with ETFs

by
April 1, 2023
0

In this article BAC Follow your favorite stocksCREATE FREE ACCOUNT There's a corner of the market gaining traction among ETF...

Next Post

Freddie Mac: Mortgage Serious Delinquency Rate decreased in October

November 23rd COVID-19: New Cases and Hospitalizations Increasing

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:



By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

MOST VIEWED

  • WHO says Covid vaccine booster programs will prolong pandemic

    0 shares
    Share 0 Tweet 0
  • Forget Tesla — this auto stock is the one to buy right now, analyst says

    0 shares
    Share 0 Tweet 0
  • Spin or Split? AT&T Has a Big Decision to Make on Discovery Stake.

    0 shares
    Share 0 Tweet 0
  • Here’s how Carl Icahn is positioning for a possible recession in America

    0 shares
    Share 0 Tweet 0
  • Some lawmakers and their families are betting thousands of dollars on crypto

    0 shares
    Share 0 Tweet 0
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
All rights reserved by tradingconcept.net
No Result
View All Result
  • Email Whitelisting
  • Home
  • Privacy Policy

All rights reserved by www.tradingconcept.net