Gap Inc (NYSE:GPS) stock nudged higher in premarket, up 1.4% at $9.66, after it reported mixed second quarter results with revenue of $3.55 billion, down 8% year-on-year and slightly below the expected $3.57 billion.
However, earnings stood at $0.34 per share, surpassing the anticipated $0.09 per share.
The clothing retailer's guidance for the next quarter indicates a decline in net sales.
Looking ahead, Gap guided for net sales to fall low single digits in the fiscal third quarter from $4.04 billion in the same quarter of 2022. Analysts had called for a 6.8% decline.
Notably, Gap said its guidance “takes into consideration the continued uncertain consumer and macro environment.”
The earnings results come just two days into new CEO Richard Dickson’s time on the job. The former Mattel executive is trying revitalize the company’s brands including Gap, Old Navy, Banana Republic and Athleta.
“We’re seeing encouraging signs of progress, as our teams streamline the way we work so we can focus on growth-driving initiatives – a virtuous cycle that we’ll look to become our norm,” Dickson said in a statement.
“This means we have to do things differently, with a clear focus on redefining our brands’ meaning to consumers, focusing on creativity, designing for relevance as a pursuit rather than a goal, and leveraging our remarkable legacy to shape an exciting new future.”