Research Desk Line-up: J.Jill Post Earnings Coverage

LONDON, UK / ACCESSWIRE / September 7, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on The Gap, Inc. (NYSE: GPS), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=GPS, following the Company's announcement of its second quarter fiscal 2017 financial results on August 16, 2017. The Company's brands include the namesake chain of stores, Banana Republic and Old Navy. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

http://protraderdaily.com/register/

Get more of our free earnings reports coverage from other constituents of the Apparel Stores industry. Pro-TD has currently selected J.Jill, Inc. (NYSE: JILL) for due-diligence and potential coverage as the Company announced on August 29, 2017, its financial results for Q2 FY17 which ended on July 29, 2017. Register for a free membership today, and be among the early birds that get access to our report on J.Jill when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on GPS; also brushing on JILL. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=GPS

http://protraderdaily.com/optin/?symbol=JILL

Earnings Reviewed

The Gap's net sales were $3.80 billion for Q2 2017 compared to $3.85 billion for Q2 2016. The translation of foreign currencies into US dollars negatively impacted the Company's net sales by approximately $37 million for the reported quarter. The Gap's comparable sales grew 1% for Q2 2017 versus a 2% drop in comparable sales in the year ago same period. The Company's revenue numbers beat analysts' expectations of $3.77 billion.

During Q2 2017, The Gap's operating expenses were $1.03 billion compared to $1.16 billion in Q2 2016. Excluding the $64 million gain from insurance proceeds related to the Fishkill fire recorded in the reported quarter and restructuring costs of $135 million recorded in the year ago same period, operating expenses were up about $70 million on a y-o-y basis in Q2 2017. The Company attributed the increase in adjusted operating expenses to an increase in payroll, largely due to bonus payments, as well as investments in digital and customer initiatives that support The Gap's long-term growth.

The Gap's operating margin was 11.9% for Q2 2017 compared to 7.2% in Q2 2016. The Company's adjusted operating margin for the reported quarter was 10.2% compared to an adjusted operating margin of 11.1% in the prior year's same quarter.

For Q2 2017, The Gap recorded net income of $271 million, or $0.68 per diluted earnings per share, compared to net income of $125 million, or $0.31 per diluted share, in Q2 2016. On an adjusted basis the Company's diluted earnings per share (EPS) were $0.58, excluding a $0.10 benefit from insurance proceeds related to the fire that occurred on the company's Fishkill distribution center campus in FY16. The Gap's earnings exceeded Wall Street's expectations of $0.52 per share.

Inventory

At the end of Q2 2017, The Gap's total inventory was up 5% on a y-o-y basis. The Company stated approximately half of the increase was due to the timing of in-transit inventory and the rest was due to mixing into key loyalty categories.

Cash and Cash Equivalents

The Gap ended Q2 2017 with $1.6 billion in cash and cash equivalents. The Company's year-to-date free cash flow was $270 million; reflecting the timing of lease payments and a larger increase in inventory from the beginning of the fiscal year to the end of the quarter when compared to the same period in the fiscal year 2016.

During Q2 2017, The Gap repurchased 4.5 million shares for about $100 million and ended the reported quarter with 392 million shares outstanding. The Company expects to spend about $100 million on share repurchases in Q3 2017.

The Gap paid a dividend of $0.23 per share during Q2 2017. In addition, on August 10, 2017, the Company announced that its Board of Directors authorized a third quarter dividend of $0.23 per share.

The Gap's fiscal year-to-date 2017 capital expenditure was $275 million. The Company continues to expect capital spending to be approximately $625 million for FY17, excluding an estimated $200 million associated with the rebuilding of the company's Fishkill, New York distribution center campus and related supply chain spend.

Real Estate

The Gap ended Q2 2017 with 3,642 store locations in 47 countries, of which 3,179 were Company-operated. The Company expects store count to be flat at the end of the fiscal year 2017 compared to the fiscal year 2016.

Outlook

The Gap updated its reported diluted EPS guidance for FY17 to be in the range of $2.12 to $2.20. Excluding the benefit from insurance proceeds related to the Fishkill fire of approximately $0.10, the Company expects its adjusted diluted EPS to be in the band of $2.02 to $2.10. The Gap continues to expect comparable sales for FY17 to be flat to up slightly.

Stock Performance

On Wednesday, September 06, 2017, the stock closed the trading session at $25.82, jumping 7.45% from its previous closing price of $24.03. A total volume of 13.87 million shares have exchanged hands, which was higher than the 3-month average volume of 5.99 million shares. Gap's stock price rallied 7.40% in the last one month, 16.67% in the past three months, and 10.20% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have surged 15.06%. The stock is trading at a PE ratio of 12.27 and has a dividend yield of 3.56%. The stock currently has a market cap of $10.07 billion.

Pro-Trader Daily:

Pro-Trader Daily (Pro-TD) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. PRO-TD has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles, and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

PRO-TD has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email contact@protraderdaily.com. Rohit Tuli, a CFA® charter holder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by PRO-TD. PRO-TD is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

PRO-TD, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. PRO-TD, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, PRO-TD, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither PRO-TD nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://protraderdaily.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: contact@protraderdaily.com

Phone number: (917) 341.4653

Office Address: Mainzer Landstrasse 50 Frankfurt am Main, Germany 60325

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Pro-Trader Daily