Post-Earnings Expert Review - Gap
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LONDON, August 27, 2014 /PRNewswire/ --
Investor-Edge.com has issued free earnings briefing and coverage on Gap Incorporation (NYSE: GPS). The company featured in the headlines on Thursday, August 21, 2014 after declaring its results for the second quarter ended August 02, 2014. During Q2 2014, the company's diluted EPS increased 17% Y-o-Y and its net sales grew 3% Y-o-Y. Our free coverage report can be accessed at:
http://www.investor-edge.com/register
For Q2 FY14, Gap Inc.'s net sales increased to $3.98 billion from $3.87 billion in the prior year quarter. For the second quarter of 2014, Gap Inc. reported diluted earnings of $0.75 per share, compared with $0.64 in the year ago period. Excluding a benefit of about $0.05 from a gain on the sale of a building, the company reported an adjusted diluted EPS of $0.70 in Q2 2014. Analysts from Bloomberg were expecting the company to report
This information couldn’t be corroborated from the Gap Inc. BB data provided to us. As per the excel sheet this a net income estimation while the write-up mentions the same as net sales.
diluted EPS of $0.74 in Q2 FY 14. During the reported quarter, the company reduced its operating expenses by $44 million on Y-o-Y basis, to $1.00 billion. Gap Inc.'s marketing expenses for the second quarter decreased by $6 million from the prior year quarter to $142 million. For Q3 FY14, the company is expecting a rise of about $25 million in its marketing expenses from the third quarter of 2013, primarily due to increased spending at Gap brand to support its new Fall marketing campaign. The free research on GPS can be downloaded as in PDF format at:
http://www.Investor-Edge.com/GPSFreeReport
During the second quarter of 2014, Gap Inc.'s operating margin increased to 14.2% from 13.5% Q2 FY13. The company is expecting operating margin to be nearly flat for fiscal year 2014. The company's comparable sales were flat in the second quarter of 2014, compared with a 5% increase in the previous year quarter. During the reported quarter, comparable sales at company's Gap Global stores fell by 5%, while the same at Banana Republic Global stores were flat, and grew 4% at Old Navy Global stores. For the quarter ended August 02, 2014, the company's inventory dollars per store were up 2% on Y-o-Y basis. For Q3 FY14, the company expects low single digit growth in inventory dollars per store on Y-O-Y basis. During Q2 2014, the company repurchased 9 million shares, worth $364 million and ended the second quarter with 434 million shares outstanding. Gap Inc. paid a dividend of $0.22 per share during the second quarter of 2014. In addition, on August 15, 2014, the company's board of directors authorized a dividend of $0.22 per share for Q3 2014.
Glenn Murphy, Chairman and CEO of Gap Inc., stated that the company has built upon last year's strong performance and grew its sales 3% and delivered solid improvement in earnings per share. He added that the company will continue to focus on strategic initiatives, as it aims to deliver a strong second half. Sign up and read the free analyst's notes on GPS at:
http://www.Investor-Edge.com/GPS-27082014
In its guidance for FY 2014, the San Francisco, California-based company expects its full-year 2014 diluted EPS to in the range of $2.95 to $3.00, reflecting related gain on asset sale. Gap Inc. continues to expect depreciation and amortization expense, net of amortization of lease incentives, to be about $520 million for fiscal year 2014. In addition, as a part of its global expansion strategy, the company announced that it is planning to enter India through franchise-operated Gap brand stores in 2015. The company's management stated that the Gap brand grew its store base in the greater China region with 5 new stores during the second quarter, and the company is on track to finish fiscal year 2014 with approximately 110 Gap stores across mainland China, Hong Kong and Taiwan.
Stock Performance
On Friday, August 22, 2014, a day after the earnings release, Gap Inc.'s stock surged 5.21% to end the day at $45.43. On the last close, Tuesday, August 26, 2014, shares of the company hit a new 52-week high of $46.61, before closing the session 1.23% higher at $46.27. A total of 4.44 million shares were traded, which was above its three months average volume of 3.17 million shares. Over the previous three trading sessions and in the last one month, shares in Gap Inc. have gained 7.16% and 15.91%, respectively. Moreover, the stock has surged 18.40% from the beginning of 2014. Shares in GAP Inc. are trading above their 50-day and 200-day moving averages. The stock's 50-day moving average of $41.26 is above its 200-day moving average of $40.53. Furthermore, the company's stock traded at a PE ratio of 16.96 and has a Relative Strength Index (RSI) of 79.91. Visit Investor-Edge and access the latest research on GPS at:
http://www.Investor-Edge.com/GPSEarningsCoverage
Sneak Peek to Corporate Insider Trading
On August 08, 2014, Mr. Keiser John T, Executive Vice President of Global Product Operations at Gap Inc. purchased 25,000 shares of Gap Inc., worth $513,500 at $20.54, per share. While, on the same day he sold 25,000 shares for a total value of $1.06 million at a price of $42.50 a share. Complimentary in-depth research on GPS is available at:
http://www.Investor-Edge.com/GPSInsiderTrading
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