The Gap, Inc. (GPS), an apparel retail company, has soared 7.72% in the premarket trading session. As a result, the stock was trading at $15.35 when last checked. During Thursday’s regular trading session, the stock declined by 2.20 percentage points to close the day at $14.25. The stock is on the rise in premarket owing to the announcement of financial results by the company as it topped the revenue estimates, prompting investors to buy the stock in bulks.
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Q4 and FY 2021 Results
On Thursday, after the closure of the market, GPS released the Q4 and FY 2021 results. The period ended on 29th January 2022. The company generated 44.5 billion in terms of net sales during Q4 2021, a decline of 3% compared to fiscal 2019. The net sales generated during FY 2021 were $16.7 billion, an increase of 2% compared to FY 2019. The stats were compared to 2019 because the COVID-19 pandemic significantly impacted the figures of the Fiscal year 2020. The diluted loss per share for the quarter was $0.04. For the fiscal year 2021, the diluted loss per share stood at $0.67.
FY 2022 Outlook
GPS also announced the outlook for the fiscal year 2022. The company expects the net sales growth to lie in the single-digit range. The operating margin is expected to remain between 6.3% and 6.8% during the fiscal year 2022. The company expected the net interest expense to remain at approximately $70 million, while the effective tax rate is expected to remain at 27% during the fiscal year 2022.
Comments From CEO of GPS
Sonia Syngal, CEO of GPS, commented that the core business of the company remains strong in the wake of testing times endured as a result of the pandemic. The company is confident in its ability to execute against its long-term strategy via capitalizing upon the investments in demand generation for increasing profitable growth.
What’s Ahead for GPS?
Analysts are of the view that GPS stock holds several negative signals currently, and hence, is expected to decline in the next few days time period. Investors should keep that in mind while taking any decision regarding their investments.
