12.38 +0.07 (0.01%)
After hours: 7:59PM EDT
|Bid||12.30 x 2200|
|Ask||12.37 x 2200|
|Day's Range||11.16 - 12.82|
|52 Week Range||5.26 - 19.86|
|Beta (5Y Monthly)||0.89|
|PE Ratio (TTM)||5.74|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||Apr 06, 2021|
|1y Target Est||N/A|
BMO Managing Director Simeon Siegel joins Yahoo Finance’s On The Move to assess the outlook for retailers amid the coronavirus pandemic.
Yahoo Finance's Emily McCormick joins The First Trade to break down Gap's response to a lawsuit filed by the mall owner Simon Property Group against the retailer.
While the number of confirmed cases that causes COVID-19 and death tolls keep rising, a “shock” increase in jobs and drop in unemployment in the U.S. in May add to signs suggesting the worst of the pandemic is over as the easing of lockdown measures continues nationwide.
A silver lining in Gap's (NYSE: GPS) otherwise dour first-quarter earnings report yesterday was that sales at already opened stores have recaptured 70% of last year's numbers. CFO Katrina O'Connell told analysts, "we're pleased with reopened stores already generating sales at nearly 70% of their performance last year, with particular strength at Old Navy, where our customer base is strong and our store fleet is advantaged given its off-mall positioning." All three of Gap's multi-billion dollar brands -- Banana Republic, Old Navy, and its self-named chain -- failed to record a single instance of same-store sales growth in any quarter of 2019 and its Gap brand has only notched one quarter of positive comps in the last five years.
Mall owner giant Simon Property Group Inc (NYSE: SPG) is suing retailer Gap Inc (NYSE: GPS) over unpaid rent and other expenses, The Wall Street Journal reported on Thursday.What HappenedSimon is taking Gap to court as the retailer failed to pay its rent for April, May and June, according to WSJ. Simon is also requesting the court force Gap to pay its attorney fees and other expenses.Simon said in the complaint the requirement that Gap and its entities "timely pay rent due under the leases has not been excused."Gap previously said in April it can't pay rent because of its cash flow problems brought on by the COVID-1 pandemic.Why It's ImportantGap CFO Katrina O'Connell said in its first-quarter conference call on Thursday it's "knee deep with all the landlords today." The executive said it's "very hard" to offer any timeline, although it's looking for ways to "partners with our landlords to come out with a better profitability for the company."Simon properties had 412 Gap and its other branded stores, making it one of the mall owner's top store tenants aside from department stores.Gap's stock traded around $12.24 per share at the time of publication.Related Links:GAP Losses Pile Up To Nearly B Due To Coronavirus Store ClosuresCramer Says The Latest Rotation Trend Is Driven By 'Ravenous Consumers'See more from Benzinga * Cramer Says The Latest Rotation Trend Is Driven By 'Ravenous Consumers'(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Gap Inc. says it has reopened 1,500 stores across North America, with these locations generating about 70% of last year's sales performance. Old Navy is showing "particular strength," according to Katrina O'Connell, Gap's chief financial officer, speaking on the retailer's late Thursday earnings call. "Our brands matter," said Gap's Chief Executive Sonia Syngal, who used the earnings call to remind investors and analysts about the size and relevance of the company. Gap reported a first-quarter loss and sales that missed expectations. "We don't talk about this enough, but Gap Inc. has three multibillion-dollar brands in Old Navy, Gap and Banana Republic, with Athleta closely on the horizon," Syngal said on the call, according to a FactSet transcript. "And Old Navy, Banana Republic and Gap brands rank amongst only nine specialty brands that exceed $2 billion of sales in the U.S." Despite that, BMO Equity Research thinks the company has a rough turnaround road ahead. "[A]lthough we believe COVID-19 may provide a unique opportunity to refashion the business for the future, we expect growth will be structurally challenging to come by," wrote analysts led by Simeon Siegel. BMO rates Gap stock market perform with a $9 price target. Gap shares rose 1.5% in Friday trading, but have slumped 30.3% for the year to date. The S&P 500 index is down 0.8% for the period.
CEO Sonia Syngal said that the reopening of Gap's various stores as the pandemic eases is going better than expected, remarking, "we have more than 1,500 stores open in North America, ahead of plan, and as stay at home restrictions ease in many markets, we expect to have the vast majority of our North American stores reopened in June." Syngal also noted Gap's online sales are growing very fast, posting 40% expansion in April and ballooning 100% in May. Earlier, online sales rose by 13% year over year during Q1. Out of Gap's main brands, Athleta showed the strongest online sales growth during the first quarter, with a 49% increase in e-commerce, while Old Navy took second place with a 20% increase in online purchases.
U.S. stock indexes jumped on Friday, with the Nasdaq Composite less than 1% away from a record high, after a closely watched report showed surprise job additions in May, lending weight to hopes of a faster economic rebound from a coronavirus-led slump. Data from the Labor Department showed nonfarm payrolls rose by 2.509 million jobs last month after a record plunge of 20.687 million in April, and the unemployment rate unexpectedly fell to 13.3% in May from 14.7% in April. "The unemployment rate was likely to peak in May and then get better from there, but it looks as though it might have peaked in April, which is a very positive development for the economy."
Don’t count Peter Tchir, head of market strategy at Academy Securities, in the markets-are-irrational camp. In an absolute stunner, the Labor Department reported 2.5 million jobs were added in May, and a decline in the unemployment rate of 1.4 percentage points to 13.3%.
Friday's report from the Labor Department is likely to show the U.S. unemployment rate shooting up to almost 20% in May, a new post-World War Two record, but investors have so far shrugged off dire data on hopes that an easing of coronavirus-led lockdowns would revive business activity. The Nasdaq 100 became the first U.S. equity index on Thursday to reclaim its all-time high, with the rebound driven partly by tech-related firms including Amazon.com Inc and Netflix Inc. The Nasdaq Composite, which is more closely watched than the Nasdaq 100, is just about 2% below its own record high, while the S&P 500 and Dow Jones indexes are 8% and 11% below their respective all-time highs.
The $1 trillion container shipping industry is in a slowdown. Many are also cutting down the number of voyages and providing short-term storage for clients as the industry, which includes heavyweights like Maersk, MSC and Hapag-Lloyd, faces its biggest downturn since the 2008 financial crisis. Civil unrest in the United States has compounded their problems by further clouding the prospect for a recovery in the world's biggest retail sales market.
Gap Inc. (NYSE: GPS) reported quarterly losses amounting to nearly $1 billion due to store closures forced by the ongoing COVID-19 pandemic.What Happened Gap's first-quarter results are a reflection of the toll that the coronavirus has extorted on the retailer. While store closures eroded sales and merchandise margins, the company took a non-cash impairment charge of $484 million related to store assets and operating lease assets. It also took a $235 million non-cash inventory impairment charge.Net loss reported for the quarter stands at $932 million or $2.51 per share for three months ended May 2. Net sales declined 43% to $2.11 billion from $3.71 billion.Why It Matters According to Sonia Syngal, CEO of Gap, more than 1,500 stores are open in North America, these amount to 55% of retail establishments in the region. Gap revealed that a trend towards casual fashion has benefitted "other brands" in its portfolio, but brands like the Banana Republic were "disadvantaged." However, its Athleta and Old Navy brands were seeing stronger customer response.The retailer said it had suspended rent payments for its closed stores and was carrying out a strategic review of its real estate portfolio, orienting towards "a smaller, healthier fleet, particularly as it relates to its Gap brand and Banana Republic specialty fleets."Gap is not providing comparable sales results for the first quarter because, according to it, the metric "is not meaningful" due to temporary store closures. It said instead, it was providing net sales that consist of store sales and online sales for each brand.GPS Price Action Gap shares traded 5.52% lower at $11.47 in the after-hours session on Thursday. The shares had closed the regular session 1.59% higher at $12.14.Image: WikimediaSee more from Benzinga * Facebook Will Not Run Ads From State-Controlled Media In US * Senate Unanimously Approves Extension Of Terms For Coronavirus Small-Business Loans * South Korean Prosecutors Seek Arrest Warrant For Samsung Heir(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
At this time, I would like to welcome everyone to the Gap, Inc. First Quarter 2020 Conference Call. Welcome to Gap, Inc.'s first quarter 2020 earnings conference call. Before we begin, I'd like to remind you that the information made available on this webcast and conference call contains forward-looking statements.
Stores around the world have been forced to shut their doors due to the virus pandemic.
Gap said it lost $2.51 a share on revenue that slid 43.1% year over year for the quarter ended May 2. Analysts were looking for a per-share loss of 60 cents on a 36% decline in revenue to $2.35 billion.
Gap Inc. was forced to close 90 percent of its global fleet beginning in March.
Shares of Gap Inc. fell more than 5% in the extended session Thursday after the retailer's fiscal first-quarter results came in below expectations and sales took a hit from store closures related to the coronavirus pandemic. Gap said it lost $932 million, or $2.51 a share, in the quarter, versus a profit of $227 million, or 60 cents a share, in the year-ago period. Sales fell to $2.1 billion from $3.7 billion a year ago. Analysts polled by FactSet had expected a loss of 81 cents a share on sales of $2.3 billion. Gap did not provide same-store sales, saying the metric "is not meaningful" due to it having to close most of its stores starting in March. It provided net sales, a combination of store sales and online sales, by brand; among those, net sales at Gap fell 50% while net sales at Old Navy were down 42%. Online sales alone rose an "encouraging" 40% in April and more than doubled in May, Gap said. "This online momentum, enabled by new omni-capabilities that have expanded the way customers can shop with us, leaves us well-positioned to fuel our brands going forward," Chief Executive Sonia Syngal said in a statement. More than 1,500 stores have reopened in North America since early May, and the retailer said it expects to have "the vast majority" of them reopened this month. Gap said it ended the fiscal year with $1.1 billion in cash, cash equivalents, and short-term investments, compared with $1.7 billion at the beginning of the quarter. Cash flow was impacted by the pandemic-related sales decline, partially offset by $500 million borrowed during the quarter. "While we are pleased that store traffic and productivity is exceeding expectations, particularly at Old Navy and Athleta, we continue to plan conservatively as significant uncertainty remains ahead." Chief Financial Officer Katrina O'Connell said in the statement. Given current uncertainty, Gap did not provide an outlook. Shares of Gap had ended the regular trading day up 1.6%.
Gap (NYSE: GPS) went on a rent strike during the coronavirus pandemic to save money, but it may get more expensive as shopping mall operator Simon Property Group (NYSE: SPG) is suing the retailer for failing to pay what was due. Gap is Simon's largest tenant, in terms of both stores represented in its malls and the amount of rent it pays, and though the retailer has suffered from being forced to close because of the COVID-19 outbreak, malls have expenses they're required to pay as well. As Simon CEO David Simon noted during last month's earnings conference call, "The bottom line is, we do have a contract and we do expect to get paid."
The country's largest owner of malls is taking one of its biggest tenants to court for the rent it didn't pay while those malls were shuttered due to the coronavirus pandemic.
In April, Gap said it had stopped paying rent on stores that were closed because of the coronavirus—bills that added up to about $115 million in monthly expenses in North America.
Gap warned investors on April 23 that it was suspending rental payments for stores closed by the COVID-19 pandemic.