Gap (GPS, $27.38) misses Q4 revenue expectations
Gap Inc. reported lower-than-expected revenue for the fourth quarter, as same-store sales plunged at its Gap and Banana Republic stores. However, the retail company beat earnings expectations.
Gap’s diluted earnings came in at 61 cents a share with revenue of $4.4 billion for the quarter. That includes 45 cents a share for non-recurring tax benefits and 12 cents a share in impairment charges related to its Intermix business, which is under strategic review. Analysts polled by FactSet had expected 19 cents a share, on sales of $4.7 billion.
Same-store sales at its namesake stores fell -6%. amid COVID-mandated store closures and restrictions in Canada, China, Europe and Japan. But North America comparable sales were positive.
Banana Republic Global comparable sales plummeted -22%. Athleta stores had +26% rise in comparable sales, while Old Navy stores comparable sales increased +6%.
Digital sales increased +49%, representing 46% of net sales during the quarter.
For fiscal 2021, Gap is projecting earnings to be in the range of $1.20 to $1.35 per share. Analysts had been expecting earnings of $1.28 per share.
The company is expecting net sales to be up a mid- to high-teens percentage compared with 2020, assuming Covid-related effects continue in the first half of 2021, and the retailer returns to pre-pandemic level of sales in the second half of the year, the company said. Analysts predicted year-over-year revenue growth of 14.1%, according to Refinitiv poll.
GAP's RSI Oscillator climbs out of oversold territory
The RSI Indicator 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 Momentum Indicator moved above the 0 level on June 27, 2025. You may want to consider a long position or call options on GAP as a result. In of 80 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
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 has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
GAP moved below its 50-day moving average on June 03, 2025 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 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 Seasonality Score of (best 1 - 100 worst) indicates that the company is slightly undervalued 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.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very 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 well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 77, placing this stock slightly 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.
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General Information
an operator of stores that retail clothing, accessories and personal care products
Industry ApparelFootwearRetail
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