Clothing and accessories retailer Gap (NYSE: GAP) will be announcing earnings results this Thursday after the bell. Here’s what you need to know.
Gap met analysts’ revenue expectations last quarter, reporting revenues of $3.73 billion, flat year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ EBITDA estimates but a miss of analysts’ gross margin estimates.
Is Gap a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Gap’s revenue to grow 2.2% year on year to $3.91 billion, in line with the 1.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.58 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Gap has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.9% on average.
Looking at Gap’s peers in the apparel and footwear retail segment, only Boot Barn has reported results so far. It beat analysts’ revenue estimates by 2.1%, delivering year-on-year sales growth of 18.7%. The stock was down 4.5% on the results.
Read our full analysis of Boot Barn’s earnings results here.Debates around the economy’s health and the impact of potential tariffs and corporate tax cuts have caused much uncertainty in 2025. While some of the apparel and footwear retail stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 9% on average over the last month. Gap is up 9.2% during the same time and is heading into earnings with an average analyst price target of $25.42 (compared to the current share price of $23.99).
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