Gap shares fell significantly after its Q3 earnings report
For Q3 2020, Gap reported same-store sales that grew 5%, while the market was expecting a 0.3% decline. The increase was boosted by the company’s digital #business, which accounts for 40% of the overall growth. On its own, the #digital business surged 60% in the past three months.
The overall #revenue figures came in at $3.99 billion, ahead of the $3.82 billion expected. The #EPS was 25 cents, lower than 32 cents expected.
For the future, Gap is optimistic and expects its #Q4 revenues to be equal or slightly higher than those reported in Q4 2019. However, analysts are looking for a 2.8% decline. For the #holiday season, Gap believes that "because the consumer can't spend on entertainment [and] travel, they're looking for a place to spend their discretionary dollars. And we believe that they will be using those dollars to provide more compelling gifts to their families over the holiday season as a way to show their love and affection during these tough times," stated the company's CFO.
At the moment of writing, Gap's stock price is down more than 10%.
Sources: cnbc.com, finance.yahoo.com
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