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Earnings To Watch: Gap (GAP) Reports Q2 Results Tomorrow

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Clothing and accessories retailer Gap (NYSE: GAP) will be reporting earnings this Thursday after market close. Here’s what investors should know.

Gap missed analysts’ revenue expectations last quarter, reporting revenues of $3.50 billion, flat year on year. It was a mixed quarter for the company, with full-year EPS guidance slightly topping analysts’ expectations but EPS in line with analysts’ estimates.

Is Gap a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Gap’s revenue to decline 1.1% year on year, a deceleration from its flat revenue in the same quarter last year.

Gap Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Gap has missed Wall Street’s revenue estimates multiple times over the last two years.

Looking at Gap’s peers in the apparel and footwear retail segment, only Boot Barn has reported results so far. It exceeded analysts’ revenue estimates, delivering year-on-year sales growth of 17.7%. The stock traded up 2.3% on the results.

Read our full analysis of Boot Barn’s earnings results here.

Investors in the apparel and footwear retail segment have had steady hands going into earnings, with share prices flat over the last month. Gap is up 2.3% during the same time and is heading into earnings with an average analyst price target of $25.58 (compared to the current share price of $20.10).

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