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 sees MACD Histogram just turned negative
GAP saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on June 22, 2026. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 46 instances where the indicator turned negative. In of the 46 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on June 17, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on GAP as a result. In of 78 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent 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 July 06, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator entered the oversold zone -- be on the watch for GAP's price rising or consolidating in the future. That's also the time to consider buying the stock or exploring call options.
The Stochastic Oscillator is in the oversold zone. Keep an eye out for a move up in the foreseeable future.
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 .
GAP may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Fundamental Analysis (Ratings)
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 (1.807) is normal, around the industry mean (3.382). P/E Ratio (7.282) is within average values for comparable stocks, (17.131). Projected Growth (PEG Ratio) (1.061) is also within normal values, averaging (1.807). Dividend Yield (0.037) settles around the average of (0.034) among similar stocks. P/S Ratio (0.456) is also within normal values, averaging (0.718).
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 Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued 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 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 Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average 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 88, placing this stock worse than average.
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Fundamental Analysis Ratings
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General Information
an operator of stores that retail clothing, accessories and personal care products
Industry ApparelFootwearRetail
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