Gap stock has risen 24% YTD, with signs of turnaround, increased gross profits, and improved profitability.

From Nasdaq: 2024-11-25 21:36:37

Gap Inc. stock (NYSE: GPS) has risen 24% YTD to around $22 per share, with revenues declining from $16.7 billion in 2021 to $14.9 billion in 2023. Signs of turnaround are appearing with positive comps in FY 2024. The company’s gross profits have increased, indicating improved profitability.

Gap’s cash and cash equivalents increased by 46% y-o-y to $2 billion. The retailer reported a significant expansion of its gross margin to 42.2% in the first nine months of FY 2024. Gap forecasts revenues of $15.1 billion for FY 2024, up 1.5% y-o-y, with an expected EPS of $2.10 and a valuation of $22 per share.

In FY 2024, Gap expects sales up 1.5% to 2.0%, a mid-to-high 60% growth range in operating income, and a gross margin expansion to around 41%. The company anticipates continued strong performance from its Old Navy and Gap brands. Peer comparisons can provide valuable insights for investors across industries.



Read more at Nasdaq: What’s Next For Gap Stock?