The Gap, Inc. (NYSE: GPS) reported stronger-than-expected financial results for its fourth quarter on Thursday.
Gap said fourth-quarter revenue increased 1% year-over-year to $4.30 billion, which beat the consensus estimate of $4.22 billion, according to Benzinga Pro. The company reported quarterly earnings of 49 cents per share, significantly improved from a loss of 75 cents in the prior year's quarter. The company's bottom-line results came in ahead of estimates of 23 cents per share.
"The fourth quarter exceeded expectations on several key metrics along with market share gains, reflecting improved trends at Old Navy and Gap and strong continued progress on margins and cash flow," said Richard Dickson, president and CEO of Gap. "The financial and operational rigor we have worked to develop, and will continue to pursue, is enabling us to focus on reinvigorating our brands with the goal of generating profitable growth and value for shareholders."
Gap expects both first-quarter and full-year 2024 net sales to be roughly flat on a year-over-year basis. Gross margin is expected to expand at least 100 basis points in the first quarter. The company also guided for at least 50 basis points of margin expansion for the full year of 2024.
Gap shares gained 1.4% to close at $19.33 on Thursday.
These analysts made changes to their price targets on Gap after the company reported quarterly results.
- B of A Securities raised the price target on Gap from $13 to $15. B of A Securities analyst Lorraine Hutchinson maintained an Underperform rating.
- Telsey Advisory Group boosted the price target on Gap from $17 to $22. Telsey Advisory Group analyst Dana Telsey maintained a Market Perform rating.
- Barclays raised the price target on Gap from $26 to $28. Barclays analyst Adrienne Yih maintained an Overweight rating.
- Baird raised the price target on Gap from $19 to $23. Baird analyst Mark Altschwager maintained a Neutral rating.
- Wells Fargo increased the price target on Gap from $24 to $25. Wells Fargo analyst Ike Boruchow maintained an Overweight rating.