The iconic fashion retailer posted fiscal Q4 2021 results that didn't come in as expected
Gap announced that revenue came in 2% higher at $4.5 billion compared to last year's figures, topping the $4.49 billion estimates. However, it remained down 3% from the pre-pandemic levels, partially due to ongoing and planned store closures. At the same time, it posted an adjusted loss per share of 2 cents versus the 14 cents expected.
Same-store sales – a metric that tracks revenue at retail stores that have been open for at least a year – grew 3% year-over-year.
Supply chain disruptions remain an issue for the retailer, but Gap expects shipping issues to improve. According to CEO Sonia Syngal, the company went through near-term trouble during fiscal Q4 that "muted" the overall performance. However, she expects the delivery times of inventory shipments to improve as the company diversified its port exposure and shifted business to Eastern and Southern ports.
For the future, Gap sees the first-quarter revenue declining more than anticipated by analysts on a year-on-year basis. By the end of the first quarter, inventories are seen in the mid-20% range. For 2022, the adjusted EPS is seen between $1.85-$2.05.
At the moment of writing, Gap's stock price was trading 7.16% higher.
Sources: cnbc.com, finance.yahoo.com, thestreet.com
