Gap Inc (NYSE:GPS) will report its second-quarter fiscal 2023 financial results after the close on August 24, with the consensus forecast for earnings per share (EPS) of $0.09, up from $0.08 during the same period last year, according to Zacks Investment Research.
Analysts estimate 2Q revenue for the largest American specialty apparel retailer to come in at $3.6 billion, representing a 6.7% year-over-year decline.
During 1Q, Gap exceeded analyst expectations with an adjusted profit of a penny a share, a vast improvement from the $0.16 per share loss anticipated, as the company’s gross margins improved due to reduced promotions and lower air freight expenses.
The owner of Banana Republic and Old Navy brands could also see an upside surprise in its 2Q earnings as lower advertising expenses and technology investments from cost-saving actions should continue to boost its margins.
Shares of Gap edged up $0.02 to $9.60 in late-afternoon trading on Wednesday but have fallen 15% year to date.
Contact Sean at sean@proactiveinvestors.com