$GPS (-0.98%)
Q3 Earnings Highlights:

🔹 Adj EPS: $0.72 (Est. $0.58) 🟢

🔹 Revenue: $3.8B (Est. $3.81B) 🟡; UP +2% YoY

🔹 Comparable Sales: +1% YoY (Est. +1.2%) 🟡

FY24 Guidance:

🔹 Revenue: UP +1.5% to +2.0% YoY (Prev. "Up slightly YoY") 🟢

🔹 Operating Margin: Mid-to-high 60% growth range (Prev. 50%) 🟢

🔹 Gross Margin Expansion: ~220 bps (Prev. ~200 bps) 🟢

Q3 SEGMENT REVENUE:

Old Navy:

🔹 Net Sales: $2.2B; Comparable Sales: Flat (Est. +0.9%) 🔴

🔸 Commentary: Performance driven by operational rigor and brand reinvigoration, despite weather-related headwinds.

Gap Global:

🔹 Net Sales: $899M; Comparable Sales: UP +3% (Est. +2.3%) 🟢

🔸 Commentary: Achieved its fourth consecutive quarter of positive comparable sales due to strong product and marketing execution.

Banana Republic:

🔹 Net Sales: $469M; Comparable Sales: DOWN -1% (Est. -0.8%) 🟡

🔸 Commentary: Strength observed in men’s business; focus remains on fixing fundamentals.

Athleta:

🔹 Net Sales: $290M; Comparable Sales: UP +5%

🔸 Commentary: Brand returned to positive comparable sales, with new products and marketing resonating with customers.

Profitability Metrics:

🔹 Gross Margin: 42.7% (Est. 42.1%) 🟢; UP 140 bps YoY

🔹 Operating Margin: 9.3% (Est. 8%) 🟢; UP 270 bps YoY

🔹 Operating Expense: $1.3B

Operational Metrics:

🔹 Online Sales: UP +7% YoY; Represented 40% of total net sales.

🔹 Store Sales: DOWN -2% YoY; Total store count: 3,603 across ~40 countries.

🔹 Ending Inventory: $2.33B; DOWN -2% YoY.

🔹 Cash, Cash Equivalents, and Short-term Investments: $2.2B; UP +64% YoY.

🔹 Capital Expenditures: $330M.