Gap (GPS, $16.68) slashes full-year earnings forecast; announces CEO Art Peck's departure
Gap Inc. lowered its full-year earnings outlook. Additionally, it revealed that CEO Art Peck would be stepping down.
For the third quarter, the clothing retail giant’s same-store-sales declined -4%, including a -7% plunge in the Gap banner, a -3% decline in Banana Republic, and a -4% reduction in Old Navy same-store sales.
Adjusted earnings for the quarter are expected to be 50 to 52 cents, compared to the FactSet consensus estimate of 51 cents.
Gap’s latest full-year adjusted earnings guidance is in the range of $1.70 to $1.75 per share – much lower than its prior forecast of $2.05 to $2.15 per share. The FactSet consensus estimate is $1.86 per share.
CFO Teri List-Stoll cited macro impacts and slower traffic as additional headwinds to results that have been affected by “product and operating challenges across key brands”.
Separately, Gap announced that Art Peck is leaving the company. Under Peck’s leadership, the retailer planned to close more than half of its Gap-branded stores and spin off its Old Navy division into a standalone business by 2020. Peck has led the group since 2015. He will be replaced by board chairman Robert Fisher, a member of the company's founding family.
GAP's RSI Indicator recovers from oversold territory
The RSI Oscillator for GAP moved out of oversold territory on June 05, 2025. This could be a sign that the stock is shifting from a downward trend to an upward trend. Traders may want to buy the stock or call options. The A.I.dvisor looked at 23 similar instances when the indicator left oversold territory. In of the 23 cases the stock moved higher. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for GAP just turned positive on June 27, 2025. Looking at past instances where GAP's MACD turned positive, the stock continued to rise in of 51 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GAP advanced for three days, in of 288 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 51 cases where GAP's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on July 14, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on GAP as a result. In of 81 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The 10-day moving average for GAP crossed bearishly below the 50-day moving average on June 12, 2025. This indicates that the trend has shifted lower and could be considered a sell signal. In of 15 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where GAP declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for GAP entered a downward trend on June 25, 2025. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. GAP’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.922) is normal, around the industry mean (3.964). P/E Ratio (20.336) is within average values for comparable stocks, (110.742). Projected Growth (PEG Ratio) (1.003) is also within normal values, averaging (1.444). Dividend Yield (0.022) settles around the average of (0.028) among similar stocks. P/S Ratio (0.688) is also within normal values, averaging (1.139).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. GAP’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 77, placing this stock better than average.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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General Information
an operator of stores that retail clothing, accessories and personal care products
Industry ApparelFootwearRetail
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