The stock of The Gap (GAP) is up 15% after the clothing retailer announced strong financial results and provided bullish forward guidance that surpassed Wall Street’s expectations.
The San Francisco-based company announced Fiscal fourth quarter earnings per share (EPS) of $0.54, which trounced consensus expectations of $0.37. Revenue in the period totaled $4.10 billion, which was ahead of the $4.07 billion expected on Wall Street. Sales were down 3% from a year earlier.
“These strong results are underpinned by the momentum we’re seeing in our operational execution, our culture and the reinvigoration of our brands as they climb in the cultural conversation,” said CEO Richard Dickson in the company’s earnings release.
Strong Execution
The company also attributed its positive print to strong execution on behalf of its retail network and robust sales during the year-end holiday period. In terms of forward guidance, The Gap said that it sees total sales rising between 1% to 2% this Fiscal year. Wall Street had forecast a 1.7% increase in sales to $15.70 billion.
The retailer also forecast operating income growth of 8% to 10% this year, which was ahead of analyst projections that had 7% growth penciled in for the company. Prior to the latest earnings print from the company, GAP stock had declined 17% so far in 2025.
Is GAP Stock a Buy?
The Gap’s stock has a consensus Moderate Buy rating among eight Wall Street analysts. That rating is based on five Buy and three Hold recommendations issued in the last three months. The average GAP price target of $28.63 implies 46.97% upside from current levels. These ratings are likely to change after the company’s latest financial results.
Read more analyst ratings on GAP stock
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