The Gap, Inc. (NYSE:GPS) posted better-than-expected results for its first quarter on Thursday.
Gap reported quarterly sales of $3.39 billion which beat the analyst consensus estimate of $3.29 billion by 2.98 percent. The company reported quarterly earnings of 41 cents per share which beat the analyst consensus estimate of 14 cents, according to data from Benzinga Pro.
Comparable sales were up 3% year-over-year. Store sales were up 3%, while online sales jumped 5%. Merchandise margin increased 340 basis points compared to the prior year.
“Gap Inc. delivered a strong quarter that exceeded expectations across key metrics. We gained market share for the 5th consecutive quarter with positive comparable sales at all brands, demonstrating improved relevance with our customers as we execute against our brand reinvigoration playbook,” said Richard Dickson, president and CEO of Gap.
Gap expects second-quarter net sales to increase in the low-single-digit range on a year-over-year basis. Gap also raised its full-year guidance to reflect higher net sales and meaningfully higher operating income growth compared to the company’s prior expectations.
Gap shares gained 4% to close at $22.52 on Thursday.
These analysts made changes to their price targets on Gap after the company reported quarterly results.
- Baird raised the price target on Gap from $23 to $28. Baird analyst Mark Altschwager maintained a Neutral rating.
- Telsey Advisory Group increased Gap price target from $22 to $29. Telsey Advisory Group analyst Dana Telsey maintained a Market Perform rating on the stock.
- Morgan Stanley boosted the price target on Gap from $20 to $27. Morgan Stanley analyst Alex Straton maintained an Equal-Weight rating.
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