Latest news with #Athleta
Yahoo
4 days ago
- Business
- Yahoo
Gap Stock Tumbles 15% Post Q1 Earnings: Bargain Buy or Bearish Signal?
The Gap Inc. GAP stock slumped 14.85% in the after-hours trading session yesterday despite showcasing strong first-quarter fiscal 2025 results on the surface, with the top and bottom lines beating the Zacks Consensus Estimate. The after-hours sell-off was likely driven by concerns over $100-$150 million in tariff-related costs, a muted second-quarter and fiscal 2025 outlook, and continued struggles at Athleta and Banana Republic posted earnings per share of 51 cents, which beat the Zacks Consensus Estimate of 44 cents and improved 24.4% year over year. Sales were $3.5 billion, exceeding the Zacks Consensus Estimate of $3.42 billion and rising 2% year over year. The Gap, Inc. price-consensus-eps-surprise-chart | The Gap, Inc. Quote However, the optimism about the strong results was dampened by management's disclosure of potential tariff-related headwinds. This particularly included expectations of gross incremental costs of $250-$300 million, and net impacts of $100-$150 million to fiscal 2025 operating income, led by the current tariff policy. This unexpected hit to profitability, especially as the impacts are weighted toward the back half of the year, likely triggered investor concerns about margin compression and earnings guided for flat year-over-year sales in the second quarter of fiscal 2025, which is weaker than what investors may have expected, given the current momentum. The company also reaffirmed fiscal 2025 sales growth of just 1-2%, suggesting limited upside despite recent brand performance improvements. This cautious outlook signals that much of the current turnaround is already priced in, leaving limited room for near-term management noted that the brand-specific weaknesses, particularly at Athleta and Banana Republic, are expected to persist. Comparable sales (comps) for the Athleta brand were down 8% in the fiscal first quarter, and management acknowledged continued struggles with product and customer alignment. Net sales for Banana Republic declined 3%, with flat comps, indicating a slow recovery despite some brand rebuilding efforts. Gap's shares have experienced significant strength in the past three months. A closer look at the stock's three-month performance reveals that it has outperformed the Retail - Apparel and Shoes industry in this period. The GAP stock has rallied 30.9% in the past three months compared with the industry's growth of 4.9% and against the Retail-Wholesale sector's dip of 0.9%. The stock also compared favorably with the S&P 500's 0.6% rise in this period. Image Source: Zacks Investment Research GAP shares have outperformed its competitors, including Abercrombie & Fitch Company ANF and American Eagle Outfitters Inc. AEO, which declined 14.2% and 9%, respectively, in the past three months. Additionally, Gap has outpaced Urban Outfitters' URBN growth of 23.1% in the same priced at $27.95, the GAP stock trades 8.6% below its 52-week high of $30.59 and 64.5% above its 52-week low of $16.99. The stock is trading above its 50-day and 200-day moving averages, indicating a bullish sentiment. Image Source: Zacks Investment Research The GAP stock trades at a forward 12-month price-to-earnings (P/E) ratio of 11.79X, significantly lower than the Zacks Retail – Apparel and Shoes industry average of 18.27X and the S&P 500's multiple of 21.66X. Similarly, the forward 12-month price-to-sales (P/S) ratio of 0.68X is substantially lower than the industry average of 1.8X and the S&P 500's average of a forward 12-month P/E of just 11.79x, GAP trades at a discount to Urban Outfitters' P/E multiple of 14.48X. However, the stock reflects a premium to peers like Abercrombie and American Eagle, which command significantly lower valuation multiples. Abercrombie and American Eagle have forward 12-month P/E ratios of 7.7X and 9.76X, respectively. Image Source: Zacks Investment Research Gap, a long-standing powerhouse in the apparel industry, continues to command a strong market presence through its well-diversified brand portfolio, which includes Old Navy, Banana Republic and Athleta. While the company still holds a notable share of the U.S. apparel market, its dominance has been tested by the rapid ascent of fast-fashion players and direct-to-consumer response to the ongoing industry headwinds, Gap has executed a focused strategic turnaround. Recent financial performance reflects this momentum, supported by initiatives aimed at revitalizing its core brands. The company has sharpened its operational focus by improving supply-chain efficiency, implementing disciplined cost controls, and accelerating digital transformation to elevate customer is also investing in product innovation, sustainability and high-impact collaborations to reconnect with younger, style-conscious consumers and reinforce brand relevance. These efforts, coupled with a growing international presence and robust e-commerce expansion, have positioned Gap to remain a formidable player in a fast-evolving retail landscape. Despite the steep drop in Gap's stock following its recent quarterly report, the decline seems to stem more from short-term concerns than any fundamental weakness in the business. The company delivered a strong set of results, exceeding sales and earnings expectations, signaling continued progress in its strategic turnaround. However, management's caution around the potential financial impacts of new tariffs raised investor concerns about margin pressure in the coming quarters. While these headwinds are notable, they appear to be temporary challenges rather than signs of a structural shift in the company's long-term Gap remains attractively priced relative to its peers, suggesting that the stock can offer value for long-term investors. The company continues to benefit from operational improvements, brand momentum and a growing digital presence. That said, near-term uncertainty tied to trade policy, as well as ongoing struggles at some of its key brands, tempers the bullish a Zacks Rank #3 (Hold) and a Value Score of A, Gap stock may be best suited for watchlists rather than immediate action, offering potential upside once clarity on external pressures improves. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Abercrombie & Fitch Company (ANF) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report The Gap, Inc. (GAP) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Bloomberg
4 days ago
- Business
- Bloomberg
Gap CEO on Retail Pain
Open Interest Gap is predicting a tariff impact of as much as $300 million, and revealed stubborn weakness at two of its smaller brands, Banana Republic and Athleta. The company's CEO Richard Dickson joined Bloomberg Open Interest to talk about the weak quarter. (Source: Bloomberg)
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Travel + Leisure
4 days ago
- Lifestyle
- Travel + Leisure
After Wearing Sloppy Travel Pants for Years, I'm Switching to These 10 Comfy, Flattering Pairs—From $34
As a late-30s millennial who prioritizes comfort over fashion, I refuse to wear uncomfortable clothing when I travel. Never have I set foot on a plane while wearing jeans with an actual button fly, and 99 percent of my favorite travel pants feature wide elastic waistbands. This used to mean slumping around in a baggy sweatsuit as I waited for Boarding Group 8. Now, thanks to the emerging athleisure trend, lots of pants have elastic waistbands—and they're way more stylish than your average sweatpants; my options for comfortable-yet-cute bottoms expanded greatly. After much searching, travel, and wear-testing, I have accumulated an impressive collection of 'grown-up' alternatives to classic sweatpants. My go-to travel pants range from sleek, fitted joggers to wide-legged linen pants, and they're all perfect for a long flight or road trip. Keep scrolling to shop the elevated but still extremely comfy styles that you can always find in my suitcase. I've been on the hunt for wide-legged linen pants for the past year, and Athleta's Retreat Linen High-rise pair was exactly what I was looking for. They sit comfortably on my waist without bunching, and feel tailored and stylish despite the wide design. The two zippered pockets were perfect for stashing my hotel room key on a recent trip, and they pair nicely with chunky-heeled boots thanks to the floor-skimming length. I love the neutral colorways, and they give off an elevated look that puts them a few rungs above sweatpants without losing the comfort of my classic faves. They're light and breezy and don't cling in humidity, and the colors pair well with a range of tops and shoes. They also dried quickly after getting caught in a rainstorm, and any wrinkles shook out quickly after being packed in a suitcase. $108 at I've been hearing nothing but rave reviews about Vuori's incredibly soft DreamKnit material, and it has not disappointed. I'm loving wide-legged looks lately, and these low-slung Halo Essential pants are relaxed without looking sloppy, and pair well with a slightly taller pair of shoes thanks to their 31-inch inseam. If I wear them with flat shoes, I just double the waistband over so they don't drag on the floor. I wore these with a matching Halo Performance Hoodie for comfort during my recent cross-country travel day, but if that breaks your big-pants-little-top rule, you can switch it up with a more form-fitting long-sleeve top. I quite literally said, ' Oh my God, yes, ' when I opened this matching set from Rhone. The material feels luxuriously soft without snagging, and it has a slightly heavier, more premium feel than similar sets. The pants are long, though, so I'd recommend wearing them with a slightly taller shoe, or rolling and cuffing them to avoid dragging on the ground. These manage to be extremely soft without pilling, and have sleek, tailored lines on the trouser legs to maintain a nice shape. The waistband is a wide elastic built into the material, and the side taping is embossed with a subtle logo. These feel high-end and have the best combination of comfort and elevated style out of all the pants I tested. When it comes to joggers, I'm all about Centerline Athletics' retro-cool Courtside joggers, which are perfect for taking a short hike, jog, or hitting the pickleball court. The material is a little stiffer than some others on this list, which is why I'd also like to point in the direction of the Baleaf Woven Joggers, $39. They have the same breathable, sweat-wicking benefits but with more stretch (check out that wide, high-rise waistband). Skida's slightly cropped pants are the closest things to sweatpants I've found with their breezy, lightweight feel. The ruched waistband, flowy silhouette, and gorgeous patterns give them an elevated look when compared to traditional yoga pants, and the pants are great for warm-weather travel where I want to keep my legs covered without sacrificing breathability. Over at Amazon, the Angerella High-waisted Palazzo Pants are winning over shoppers for the same reasons. The high, wide waistband is comfortable for walking around as well as sleeping on a plane. Finally, they pack down to save luggage space—great news for travelers like me who make a valiant attempt to never bring more than a carry-on. $108 at REI $108 at With a similar look to my favorite wide-legged Vuori Halo pants, these Beyond Yoga Stretch Woven Pants fit slim through the hips but have a wide leg that creates a flattering silhouette without losing essential sweatpants comfort. The two oversized hand pockets on the front fit my phone and a small wallet, though they lack a zipper, so I usually carry a small bag if my top doesn't have a zipper pocket. The 31-inch inseam is the same length as the Vuoris, which means they brush the ground in low-profile shoes unless I double the waistband over. Overall, these are airy, breathable pants that pair well with a fitted tank top or crop top, look good in a variety of settings, and have a barely-there comfort for full travel days, or overnight flights, or train rides. The only pants with a button fly to make the cut, the cropped Kuhl Seaboard Pants snuck onto my list thanks to the loose fit and high percentage of elastic. These pants took me by surprise with their stretchy, lightweight feel, and I can sit cross-legged without any tightness or bunching. They have a casual-chic vibe that pairs as well with Blundstones as they do with dressier sandals, and I wear these with both short and long-sleeve tops depending on the weather. Out of all the comfortable travel pants on this list, these are both the least like sweatpants and the most appropriate for a variety of situations. While I wouldn't love sleeping in them, I can wear them on a full-day train ride and then out to a concert in the evening without feeling suffocated or out of place in either situation. I always pack a jumpsuit for its versatility, breathability, and range of styling that can be dressed down for a casual walk and dressed up for a nice evening dinner. Currently, I can't stop reaching for Imbodhi's Mari Jumpsuit, which has light compression through the top that is both flattering and supportive. It's truly a one-and-done travel outfit, and I never complain about putting on one item of clothing and being fully dressed. Similarly, Spanx AirEssentials Sleeveless Jumpsuit (yup, it's from the Oprah-loved AirEssentials collection) comes with a waist-snatching drawstring to create the perfect fit, plus plenty of thoughtful details to accentuate and flatter your shape without sacrificing comfort. The lightweight, fine-knit fabric promotes airflow and ensures you have enough flexibility to smoothly navigate busy airports, town squares, concert venues, and more. Love a great deal? Sign up for our T+L Recommends newsletter and we'll send you our favorite travel products each week.
Yahoo
4 days ago
- Business
- Yahoo
Gap's Q1 earnings beat overshadowed by up to $300M tariff hit
Gap (GAP) stock is plunging in after-hours trading as investors focus on the retailer's expected tariff hit rather than its first quarter earnings beat. The company's revenue was $3.46 billion, compared to the $3.42 billion expected, while earnings per share (EPS) came in at $0.51, better than the $0.45 analysts estimated. The retailer said it expects the tariff impact to cost up to $150 million in its 2025 operating income and $250–300 million in its gross estimated incremental cost. Gap maintained its full-year outlook but noted that this guidance doesn't reflect potential tariff impacts. To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here. Let's get to some more earnings now. Gap first quarter earnings coming in, the shares taking a large hit of 17%. It looks like that may have to do with some commentary around tariffs. Our Brooke DePalma is here with us now to give us more details. Yeah, in the press release the company said that their fiscal 2025 outlook does not reflect the potential effect of tariffs. That's far different than what we've been hearing from so many other companies, including Best Buy just this morning that said that now their full year guidance includes the impact of tariffs. Very specifically, they said if these tariff rates remain, they could result in a gross estimated incremental cost of approximately $250 million to $300 million, certainly not what Wall Street wants to hear here. And this was despite the company beating earnings, beating revenue, beating same store sales growth. I also want to note that within their two key brands, Old Navy as well as Gap, they beat same store sales growth expectations from Wall Street, but Banana Republic and Athleta missed expectations there. Athleta has been a brand that the company has been struggling to really reinvigorate though. That brand within Gap saw same store sales decline of 8% compared to the roughly 3% that Wall Street had expected. Another interesting point that I saw was that the company ended the quarter with inventory up 7%. We've heard so much about this. Did companies pull forward? This shows that they did. They said that they ended the inventory up $2.1 billion, was up 7% compared to last year, primarily resulting from earlier timing of receipts here. So certainly Wall Street not pleased with this report and not pleased with that, the fact that 2025 outlook does not reflect the impact of tariffs. All right, thank you, Brooke. Appreciate it. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
4 days ago
- Business
- Bloomberg
Gap Sales Beat Expectations, Powered by Growth at Old Navy
Gap Inc. posted better-than-expected quarterly results, bolstered by its Old Navy and namesake brands. Comparable-store sales in the three months ended May 3 rose 3% at Old Navy and 5% at Gap, surpassing the average analyst estimate. Revenue of $3.5 billion in the period also outperformed expectations, but struggles deepened at Gap's smaller Athleta and Banana Republic brands.
