Gap, Inc.

Gap, Inc. (GPS - Analyst Report) is weathering the weak economy better than many of its competitors, reporting first-quarter results last week that better than expected.

Company Description

The Gap, through its subsidiaries, operates as a specialty retailer domestically and internationally. The company also operates the Banana Republic and Old Navy stores. The Gap was founded in 1969 and has a market cap of $11.92 billion.

First-Quarter Results

Gap reported first-quarter results on May 21 that were down from last year but still ahead of expectations. Revenue was down 8% from last year to $3.13 billion, but earnings came in at 31 cents, one penny better than the consensus.

The respectable beat means that Gap has now surprised in each of the last 4 quarters, having done so by an average of 1 penny, or 4%.

Results Details

Gap said its online sales were up 13% to $267 million. The company also noted that its sales numbers at Old Navy, a value oriented store, were stronger than Banana Republic's results, which focuses on higher priced merchandise.

Estimates Advance

After the solid quarter, analysts pushed their earnings projections higher, with the current-year adding 3 cents and climbing to $1.20 per share. The next-year estimate is pegged at $1.31, a 10% earnings growth projection.

The Chart

Shares of GPS have been rallying with the market since early March, advancing from $9.50 to a recent high above $17. The MACD indicator is turning higher, a bullish short-term signal. Take a look below.