Gap Inc.'s stock surged 18.07% in the pre-market trading session on Friday, following the company's impressive fourth-quarter earnings results and upbeat outlook for fiscal 2025.
The apparel retailer reported adjusted earnings per share of $0.54 for Q4, comfortably beating analysts' consensus estimate of $0.38. Quarterly net sales came in at $4.15 billion, down 3.5% year-over-year but exceeding Wall Street's expectations of $4.07 billion.
Gap's strong performance was driven by solid comparable sales growth across its brand portfolio, with Old Navy, Banana Republic, and the namesake Gap division all reporting positive comparable sales. The company's inventory levels remained well-controlled, while its cash position surged 38% year-over-year to $2.6 billion.
Looking ahead, Gap projected net sales growth of 1% to 2% for fiscal 2025, with operating income expected to increase by 8% to 10%. These projections were largely in line with analysts' estimates, reflecting the company's confidence in its turnaround efforts and ability to navigate the challenging macroeconomic environment.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.