Gap (NYSE:GPS) stock was plummeting on Thursday after the company reported its latest quarterly earnings results, which included a profit and revenue that was better than what analysts were calling for, but its brand Gap comparable-store sales were below expectations.
For its second quarter of fiscal 2018, the apparel store said that its earnings came in at 76 cents per share, which was stronger than the 72 cents per share that analysts were calling for, according to data compiled by Zacks Investment Research.
Gap added that its revenue for the period tallied up to $4.11 billion, marking an 8% gain compared to its sales from the second quarter of fiscal 2017. The Wall Street consensus estimate was projecting the company to amass revenue of $3.98 billion.
The company’s same-store sales gained 2% year-over-year, ahead of the 1.5% outlook, according to Consensus Metrix. Gap brand comps fell a steep 5% year-over-year, ahead of the 2.3% decline that analysts were calling for. Old Navy comps gained 5%, ahead of the 4% forecast.
Banana Republic comps surged 2% year-over-year, in line with the Wall Street guidance. For its fiscal year, Gap sees its adjusted earnings as being in the range of $2.55 to $2.70 per share, while comps are slated to remain flat or gain slightly.
GPS stock was up about 0.7% during regular trading hours in anticipation of its latest quarterly earnings results, which sent shares plummeting nearly 6.8% after the bell due to its weak Gap comps.