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Gap's (GAP) shares are surging 13% in Thursday after-hours trading after the company reported a fourth quarter earnings beat, with adjusted earnings per share (EPS) of $0.54, beating the expected $0.35, and revenue of $4.10 billion, beating Wall Street's estimates of $4.07 billion.
Despite the slow growth expected for the company in 2025, Gap CEO Richard Dixon highlights consistent market share gains and strong performance across all four quarters of 2024.
Yahoo Finance hosts Josh Lipton and Julie Hyman discuss these positive results and the potential for a turnaround at Gap.
To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here.
This post was written by Josh Lynch
Gap is also out with its numbers. Those shares surging by some 13%. And I haven't seen numbers like this from Gap in a minute in terms of its cost.
Investors look surprised as well.
Yeah. So Gap uh comps here, global comp sales up 7%. Um that's for the Gap specific brand. Total comparable sales up 3%, Old Navy comps up 3% as well. All of these beating estimates. Um it looks like there's some reporting out that the company does expect slow growth for this year, but, you know, people have been waiting for the turnaround to come at Gap. Maybe this is a glimmer of a sign that that is happening.
Yeah. The CEO Richard Dixon adding some more color here in a statement saying the end of the year delivering another successful quarter, exceeding financial expectations. Says uh gaining market share for the eighth consecutive quarter. Talks about how the full year 2024, he says, Gap delivered positive comps in all four quarters, achieved one of the highest gross margins in the last 20 years and meaningfully increased operating margin versus the prior year. And you could see that stock shooting higher in the after hour.
Yeah, and I didn't mention earnings per share number 54 cents versus the 35 cents that analysts were estimating. So beating on that level as well. Um so I'm sure that they're going to get asked about tariffs and such on the call as well as what's going to happen with demand. But so that should be an interesting one as well to add to all of the other evidence that has been piling up from consumer facing companies.
