GAP (GPS, $18.11) disappoints on Q3 earnings
Gap posted third quarter earnings that missed analysts’ expectations.
The clothing retail company’s earnings came in at 27 cents compared to 50 cents expected by analysts polled by Refinitiv.
Revenue of $3.94 billion also fell short of $4.44 billion expected.
Gap’s inventories were down -1% at the end of the third quarter from a year ago. They were flat versus 2019. The company expects fourth-quarter inventories to be up high-single digits year over year.
Looking ahead, Gap expects full-year revenue to increase about 20%, vs. its prior forecast of about a 30% increase. Analysts polled by Refinitiv were expecting a 28.4% year-over-year gain.
Gap now projects adjusted full-year earnings to a range of $1.25 to $1.40 per share, lower than prior range of $2.10 to $2.25 a share. Analysts had expected $2.20 per share (based on Refinitiv data). The company said that the downward revision in outlook incorporates the $550 million to $650 million of lost sales from supply chain constraints and about $450 million in air freight costs.
Momentum Indicator for GAP turns negative, indicating new downward trend
GAP saw its Momentum Indicator move below the 0 level on March 03, 2026. This is an indication that the stock could be shifting in to a new downward move. Traders may want to consider selling the stock or exploring put options. Tickeron's A.I.dvisor looked at 79 similar instances where the indicator turned negative. In of the 79 cases, the stock moved further down in the following days. The odds of a decline are at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Moving Average Convergence Divergence Histogram (MACD) for GAP turned negative on February 10, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 48 similar instances when the indicator turned negative. In of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at .
GAP moved below its 50-day moving average on March 05, 2026 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for GAP crossed bearishly below the 50-day moving average on March 06, 2026. 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 .
Bullish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GAP advanced for three days, in of 286 cases, the price rose further within the following month. The odds of a continued upward trend are .
GAP may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 210 cases where GAP Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued 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 (2.370) is normal, around the industry mean (5.940). P/E Ratio (10.468) is within average values for comparable stocks, (26.498). Projected Growth (PEG Ratio) (1.377) is also within normal values, averaging (2.264). Dividend Yield (0.028) settles around the average of (0.029) among similar stocks. P/S Ratio (0.583) is also within normal values, averaging (2.276).
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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent 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 Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. GAP’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
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 84, placing this stock worse than average.
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General Information
an operator of stores that retail clothing, accessories and personal care products
Industry ApparelFootwearRetail
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