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Compared to Estimates, Gap (GPS) Q3 Earnings: A Look at Key Metrics

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Gap (GPS - Free Report) reported $3.77 billion in revenue for the quarter ended October 2023, representing a year-over-year decline of 6.7%. EPS of $0.59 for the same period compares to $0.71 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $3.61 billion, representing a surprise of +4.22%. The company delivered an EPS surprise of +195.00%, with the consensus EPS estimate being $0.20.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Gap performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Comparable Store Sales - Old Navy - YoY change: -1% versus -8.8% estimated by five analysts on average.
  • Comparable store sales - YoY change: -2% versus the five-analyst average estimate of -8.9%.
  • Comparable store sales - Banana Republic - YoY change: -8% versus the five-analyst average estimate of -7.4%.
  • Comparable Store Sales - Gap - YoY change: -1% versus the five-analyst average estimate of -5.4%.
  • Number of Store Locations - Gap - Total: 617 versus 617 estimated by four analysts on average.
  • Number of Store Locations - Banana Republic - Total: 456 versus the four-analyst average estimate of 451.
  • Number of Store Locations - Old Navy North America: 1,251 versus 1,247 estimated by four analysts on average.
  • Number of Store Locations - Company-operated stores: 2,598 versus 2,587 estimated by four analysts on average.
  • Square Footage - Banana Republic North America: 3.4 Msq ft compared to the 3.4 Msq ft average estimate based on three analysts.
  • Net Sales- Gap Global- Total: $887 million versus $879.83 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -14.8% change.
  • Net Sales- Banana Republic Global- Total: $460 million versus the four-analyst average estimate of $464.70 million. The reported number represents a year-over-year change of -11%.
  • Net Sales- Old Navy Global- Total: $2.13 billion compared to the $1.93 billion average estimate based on four analysts. The reported number represents a change of -0.5% year over year.
View all Key Company Metrics for Gap here>>>

Shares of Gap have returned +15.7% over the past month versus the Zacks S&P 500 composite's +4.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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