Investing.com — Gap Inc (NYSE:GPS)’s stellar results weren’t enough to stop profit-takers, who’ve seen shares rally more than 500% since the pandemic shuttered stores and eliminated our need for anything but the most basic and comfortable clothing.
Shares dropped almost 6%.
The retailer, which got price target increases from firms like RBC Capital and Citi, reported a profit per share of 48 cents versus an expected loss per share of 6 cents on sales of $3.99 billion, also better than the estimated $3.41 billion, according to data compiled by Investing.com.
Gap also forecast fiscal 2021 earnings per share of $1.60 to $1.75, versus the consensus of $1.38, StreetInsider reported.
“Gap Inc. delivered sales growth of 8% over 2019 pre-COVID levels, with particular strength at Old Navy and Athleta, a healthy and growing Gap business in North America, and market share gains that outpaced the industry,” said Chief Executive Officer Sonia Syngal. “As stores traffic came back, we sustained our digital dominance with 82% online growth versus 2019. And while Active and Fleece continue to soar, we saw a resurgence in summer fashion with dresses rebounding.”
Meanwhile, Gap’s (finally) getting into the home decorating business in a partnership with Walmart Inc (NYSE:WMT). This comes more than a year after we started refurnishing our homes and buying new and second homes thanks to work-from-home mandates.