Gap (GPS) Beats Estimates, Increases Dividend
Shares of The Gap Inc. (GPS) closed down -0.23 or -0.52 percent to $43.68 per share on Thursday. Shares traded mildly lower in this morningâ s pre-market, after the company announced earnings late yesterday. The company reported a profit of $307 million, or $0.68 per share, versus $351 million, or $0.73 per share in the same period one year ago, a decline of -12.5 percent.
Revenue was also lower, the company reported $4.58 billion for the quarter, compared to $4.73 billion last year. The analyst consensus for earnings was $0.65 per share on revenue of $4.58 billion. The Gapâ s board of directors also announced a 10 percent increase to the companyâ s yearly dividend, from $0.80 to $0.88 for its 2014 fiscal year.
San Francisco, California based, The Gap Inc. is the worldâ s second largest retailer of clothing and accessories. Founded in 1969, the company operates under five different divisions: The Gap, Banana Republic, Piperlime and Old Navy. The company operates more than 3,200 stores worldwide and reported net income for the 52 weeks ended on February 1, 2014 of +1.28 billion, or $2.74 per diluted share, versus $1.14 billion, or $2.33 per share for 2013. The Gap, like most other retailers, had a difficult holiday season, with customers trying to save in the slow economy, causing the chain to heavily discount many items. Nevertheless, The Gap has been increasing its efforts by marketing through its online presence and developing a service allowing customers to shop through their mobile devices. In the press release of the earnings announcement, Chairman and Chief Executive Officer, Glenn Murphy stated, â
Published on Feb 28, 2014
By Jay Hawk