The Gap logo is displayed at a Gap store on April 25, 2023 in Los Angeles, California.
Mario Tama | Getty Images
Gap reported another quarter of net losses and declining sales across its four brands but the retailer insisted it’s making progress – and has managed to significantly improve its margins.
Here’s how the apparel retailer did in its fiscal first quarter compared with what Wall Street was anticipating, based on a survey of analysts by Refinitiv:
- Earnings per share: 1 cent, adjusted (it wasn’t immediately clear whether it was comparable to estimates)
- Revenue: $3.28 billion vs. $3.29 billion expected
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For the three-month period that ended April 29, the company reported a loss of $18 million, or 5 cents per share, compared with a loss of $162 million, or 44 cents a share, in the year ago period. On an adjusted basis, the company reported earnings of $3 million, or 1 cent per share, in the period.
Sales dropped to $3.28 billion, down 6% from $3.48 billion a year earlier.
Shares of the company jumped more than 16% in after hours trading.
Gap – which includes its namesake brand, Old Navy, Banana Republic and Athleta – has been without a CEO for nearly a year as it worked to restructure the business, understand its consumers better and get back to profitability.
The company said that work is well underway but acknowledged it has long been needed. While it knew what the solutions were, those fixes have been delayed or derailed for too long and too many times, it said.
Last month, it told investors it will lay off about 1,800 employees, more than three times as many as the 500 layoffs it announced in September, as part of a broad effort to cut costs and streamline operations.
Between this year and last, the company has cut 25% of its headquarters roles, which has increased the number of direct reports each manager has from 2 to 4 and reduced management layers from 12 to 8, the company said.
The cuts remove layers of red tape and bureaucracy…
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