© Reuters Gap Earnings Miss, Revenue Beats In Q1
By Yasin Ebrahim
Investing.com — Gap Inc (NYSE:) reported on Thursday that the first quarter missed analysts’ forecasts and painted a gloomy picture for the year ahead after it cut its growth forecast amid inflationary pressure on consumers. low-end weighs.
Gap shares lost 13% in after-hours trading after the report.
Gap reported earnings per share of -$0.44 on revenue of $3.48 billion. Analysts polled by Investing.com expected EPS of -$0.1318 on revenue of $3.44 billion.
Results were pressured by “softened demand resulting from inflationary pressures affecting the low-income consumer as well as the continued lag in inventory compared to last year,” Gap said.
Looking ahead, the retailer has cut its profit target and expects revenue to decline rather than grow as “industry-wide headwinds as well as challenges at Old Navy” are expected to continue.
For the full year of 2022, GAP expects adjusted EPS to be between $0.30 and $0.60, down from a previous forecast of $1.85 to $2.05. The company now expects fiscal 2022 revenue to decline in the low-to-mid-single-digit range, compared to an earlier forecast of revenue growth in the low-single digit.
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