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Gap’s sales returned to pre-pandemic levels

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Miguel A. Rodriguez
Miguel A. Rodriguez
28 May 2021
The American worldwide clothing and accessories retailer reported fiscal first-quarter 2021 figures that topped the pre-pandemic levels

Gap swung to a profit of $166 million, from last year’s $932 million loss. In the quarter, the company reported an EPS of 48 cents on revenues of $3.99 billion. The market was looking for a loss-per-share of 5 cents, and a revenue of $3.45 billion.

Online sales accounted for 40% of its overall revenue, marking an 82% increase from two years prior.

For the future, the company announced that it is looking to close about 350 of its Gap and Banana Republic locations in North America by the end of fiscal 2023, many of which are inside malls. At the same time, Gap is calling for an adjusted EPS in a range of $1.60 - $1.75.

Moreover, Gap inked a multiyear deal with Walmart to create a home goods brand, as they are looking to generate more online sales, and strengthen the brands among people. The new brand, Gap Home, will launch on June 24. Also, the highly anticipated clothing collaboration with rapper Kanye West – Yeezy Gap – is expected to debut this year.

After the news hit the wires, Gap stock price went up about 4%. Year-to-date, its stock went up 74%.

Sources: cnbc.com, cnn.com

This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.