$GPS (-1,48聽%)
Q3 Earnings Highlights:
馃敼 Adj EPS: $0.72 (Est. $0.58) 馃煝
馃敼 Revenue: $3.8B (Est. $3.81B) 馃煛; UP +2% YoY
馃敼 Comparable Sales: +1% YoY (Est. +1.2%) 馃煛
FY24 Guidance:
馃敼 Revenue: UP +1.5% to +2.0% YoY (Prev. "Up slightly YoY") 馃煝
馃敼 Operating Margin: Mid-to-high 60% growth range (Prev. 50%) 馃煝
馃敼 Gross Margin Expansion: ~220 bps (Prev. ~200 bps) 馃煝
Q3 SEGMENT REVENUE:
Old Navy:
馃敼 Net Sales: $2.2B; Comparable Sales: Flat (Est. +0.9%) 馃敶
馃敻 Commentary: Performance driven by operational rigor and brand reinvigoration, despite weather-related headwinds.
Gap Global:
馃敼 Net Sales: $899M; Comparable Sales: UP +3% (Est. +2.3%) 馃煝
馃敻 Commentary: Achieved its fourth consecutive quarter of positive comparable sales due to strong product and marketing execution.
Banana Republic:
馃敼 Net Sales: $469M; Comparable Sales: DOWN -1% (Est. -0.8%) 馃煛
馃敻 Commentary: Strength observed in men鈥檚 business; focus remains on fixing fundamentals.
Athleta:
馃敼 Net Sales: $290M; Comparable Sales: UP +5%
馃敻 Commentary: Brand returned to positive comparable sales, with new products and marketing resonating with customers.
Profitability Metrics:
馃敼 Gross Margin: 42.7% (Est. 42.1%) 馃煝; UP 140 bps YoY
馃敼 Operating Margin: 9.3% (Est. 8%) 馃煝; UP 270 bps YoY
馃敼 Operating Expense: $1.3B
Operational Metrics:
馃敼 Online Sales: UP +7% YoY; Represented 40% of total net sales.
馃敼 Store Sales: DOWN -2% YoY; Total store count: 3,603 across ~40 countries.
馃敼 Ending Inventory: $2.33B; DOWN -2% YoY.
馃敼 Cash, Cash Equivalents, and Short-term Investments: $2.2B; UP +64% YoY.
馃敼 Capital Expenditures: $330M.