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Earnings: Gap beats on revenue, Costco reports strong quarter

Yahoo Finance's Jared Blikre breaks down the quarterly earnings results for Gap and Costco.

Video Transcript

EMILY MCCORMICK: We're tracking all the major corporate earnings results out after market close today. Yahoo Finance's own Jared Blikre is here with the numbers from Gap. And Jared, that stock up more than 15%. How'd they do?

JARED BLIKRE: Yeah, really nice pop here in afterhours trading. I think it has to do with their 2023 full year forecast. They're seeing adjusted EPS of $1.85 to $2.05. The estimate was for quite a bit lower, $1.74. They're also seeing operating margin of 6.3% to 6.8%. The estimate was for lower than that, both of those numbers, 5.8%. They're seeing capital expenditure of about $700 million, while the estimate was for $780.2 million, so not spending as much money as the Street thought.

Now here are the fourth quarter results that they're reporting. Total comp sales, that's 3%. The estimate was for a bit higher, almost 4%. But the adjusted loss per share was $0.02, and the Street was expecting a much wider loss of $0.14 per share. Net sales coming in at $4.5 billion. That is in line with the estimate of $4.49 billion. And then gross margin falling just a little bit short here, 33.7%, when the Street was expecting 34.7%. And then the total location count, 3,399 stores, and the estimate was for just a tad higher, 3,476.

Now here's some additional commentary based on their outlook. They're seeing full year revenue growth in the low single digit reign. They're seeing the first quarter net sales down mid to high single digits. And in terms of some of their brands, Old Navy, fourth quarter comp sales, those were unchanged versus 2019, so going back a few years there. Cap global fourth quarter comp sales, that's up 3% versus 2019. Bananya Republic down 2%. Finally, Athleta, fourth quarter comp sales up 42%.

Now let's take a look at the chart on the YFi Interactive. And over the time period of year to date-- here we go-- it's down 20%. I like to take a longer term look here. Here's a three-year where we can see the pandemic rise and the subsequent fall here, so giving back quite a bit of those gains and probably going to get some additional commentary on the call. And we'll see if we can break through some resistance in the trading day tomorrow, guys.

RACHELLE AKUFFO: And Jared, another big name reporting as well, Costco. What did we see there?

JARED BLIKRE: Yes, and we can see that stock is down just a little bit in afterhours trading. Now let me get to the numbers. So the second quarter results, EPS coming at $2.92 per share. That's versus $2.14 one year ago. Now here's one of the key metrics. Total company comparable sales excluding fuel and also in constant currency, that was up 11.1%. And that's about a full percentage point higher than the 10.1% estimate that the Street gave. By the way, it was a little bit higher last year, 12.9%, so coming down from those numbers that we saw a year ago.

Also, same number, but including gas and FX. That was 14.4%. The estimate was for quite a bit lower, 12.2%. And then total revenue coming in at $51.9 billion, and that's a little bit higher than the estimate of $51.47 billion. Got one more fact for you here, membership fees, $967 million. And that's just a little bit higher than the estimate of $948.9 million. That figure is up 9.8% year over year.

So not fluctuating too much in afterhours trading, but we will check out a longer term chart. This is still looking at three years here. And really nice to be able to maintain those gains. Of course, this is a company that is a consumer staple. People must buy those goods. And you can see, pretty close to those record highs there, guys.

BRAD SMITH: All right, people were buying them over this past quarter. Jared Blikre, Yahoo Finance's own, breaking down Costco for us there, as well as Gap.