Gap’s Q4 EPS Flat at $0.45 While Athleta Sales Drop 10%
In Q4, Gap reported adjusted EPS of $0.45, matching estimates, and $4.24 billion in revenues, slightly below consensus. Same-store sales at Athleta plunged 10% year-over-year, intensifying pressure on the apparel group’s growth trajectory.
1. Fourth-Quarter Financial Results
Gap reported adjusted earnings of $0.45 per share in the quarter ended January, matching consensus, while revenue came in at $4.24 billion, slightly under forecasts. The result marked a 16.7% year-over-year EPS decline and a 2.2% revenue increase from the same period last year.
2. Athleta Sales Decline
The Athleta brand saw same-store sales drop 10% in Q4, marking its steepest quarterly decline in over two years and signaling softening demand in activewear. This downturn offsets gains in Gap’s core and Banana Republic segments and raises concerns about margin pressure.
3. Market Performance and Outlook
Gap shares have risen 8.4% year to date versus a 0.4% S&P gain. Current consensus projects $0.45 EPS and $3.5 billion in revenue for the coming quarter, while full-year forecasts stand at $2.31 EPS on $15.65 billion in sales.