Gap (NYSE:GPS) earnings for the clothing retailer’s fiscal first quarter of 2020 have GPS stock sinking lower after-hours Thursday. That’s due to it reporting diluted losses per share of $2.51 on revenue of $2.11 billion. Both of these are worse than Wall Street’s estimates of -67 cents per share and revenue of $2.3 billion.
Here’s what else went wrong for Gap during its most recent earnings report.
- Diluted per-share losses are much worse than its diluted EPS of 60 cents from the same time last year.
- Revenue for the quarter comes in 43% lower than the $3.71 billion from the fiscal first quarter of 2019.
- Operating loss of $1.24 billion is a negative switch year-over-year from an operating income of $316 million.
- The Gap earnings report also has it bringing in a net loss of $932 million.
- That’s a massive drop compared to the company’s net income of $227 million from the same period of the year prior.
Sonia Syngal, president and CEO of Gap, said this about the earnings.
“Our teams’ ability to pivot quickly and lean into our strong online business resulted in an encouraging 40% online sales growth in April. While net sales and stores sales continued to reflect material declines in May as a result of closures, we saw over 100% growth in online sales during the month.”
Gap isn’t providing an outlook for fiscal 2020 in the current earnings report. It cites the novel coronavirus as the reason behind this decision. That has it following a trend set by many other companies during the pandemic.
GPS stock was down 3.9% after markets closed on Thursday but was up 1.6% at the end of normal trading hours.
As of this writing, William White did not hold a position in any of the aforementioned securities.