What To Expect From Gap's (GAP) Q2 Earnings

Clothing and accessories retailer Gap (NYSE:GAP) will be reporting results this Thursday after market close. Here’s what investors should know.

Gap beat analysts’ revenue expectations by 1.3% last quarter, reporting revenues of $3.46 billion, up 2.2% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.

Is Gap a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Gap’s revenue to be flat year on year at $3.74 billion, slowing from the 4.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.55 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Gap has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.8% on average.

Looking at Gap’s peers in the apparel and footwear retail segment, only Boot Barn has reported results so far. It beat analysts’ revenue estimates by 1.5%, delivering year-on-year sales growth of 19.1%. The stock price was unchanged following the results.

There has been positive sentiment among investors in the apparel and footwear retail segment, with share prices up 2.4% on average over the last month. Gap is up 6.4% during the same time and is heading into earnings with an average analyst price target of $24.51 (compared to the current share price of $21.70).

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