Stock Monitor: Cato Post Earnings Reporting
LONDON, UK / ACCESSWIRE / April 12, 2018 / Active-Investors.com has just released a free earnings report on The Gap, Inc. (NYSE: GPS) ("Gap"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=GPS. Gap reported financial results for the fourth quarter and full year ended February 03, 2018 on March 01, 2018. The Company exceeded analysts' consensus estimates for earnings, revenue, and same-store sales for Q4 FY17. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Earnings Highlights and Summary
Gap's total revenues reached $4.78 billion for Q4 FY17, up 7.88% from $4.43 billion in Q4 FY16. Total reported revenue number exceeded analysts' consensus estimates of $4.67 billion. Gap's same-store sales increased 5% y-o-y in Q4 FY17 compared to increase of 2% in Q4 FY16. The figure also came in ahead of analysts' projections of 1.7%. At the end of Q4 FY17, the Company had 3,594 store locations including 3,165 company-operated stores and 429 franchisee-stores.
During Q4 FY17, Gap's cost of goods sold and occupancy expenses were $3.02 billion, an increase of 3.11% from $2.93 billion in Q4 FY16. The Company's gross profit advanced 17.19% to $1.76 billion in the reported quarter from $1.5 billion in the year ago same quarter.
Gap incurred operating expenses of $1.36 billion in Q4 FY17 compared to $1.2 billion in Q4 FY16, reflecting an increase of 13.58%. The Company's operating income rose 31.56% to $396 million in the quarter under review from $301 million in the year ago comparable quarter.
Gap earned a net income of $205 million, or $0.52 per diluted share, in Q4 FY17, a decrease of 6.82% from $220 million, or $0.55 per diluted share, in Q4 FY16. Gap's results for the reported quarter included the tax impact from the enactment of the Tax Cuts and Jobs Act. The Company's adjusted diluted earnings per share (DEPS), excluding non-recurring items, was $0.61 in Q4 FY17, an increase of 19.61% from $0.51 in Q4 FY16. Gap's adjusted earnings per share (EPS) was higher than analysts' consensus estimates of $0.58 per share.
For the year ending February 03, 2018, Gap's total sales were $15.86 billion, up 2.18% from $15.52 billion in FY16. Gap's same-store sales increased 3% y-o-y in FY17. The Company's gross profit advanced 7.55% to $6.07 billion y-o-y while operating income increased 24.18% to 1.48 billion y-o-y in FY17. Gap's net income was $848 million, or $2.14 per diluted share, in FY17 from $676 million, or $1.69 per share, in FY16. The Company's adjusted DEPS for full year 2017, excluding special items was $2.13, up 5.45% from $2.02 in FY16.
Gap's Segment Details
The Gap Global segment generated net sales of $1.61 billion in Q4 FY17, up 1.71% from $1.58 billion in Q4 FY16. Of this, US accounted for 57.78% of sales, Canada 7.53%, Europe 11.89%, Asia 20.98%, and other regions 1.81%.
The Old Navy Global segment's net sales were $2.16 billion in Q4 FY17 compared to $1.92 billion in Q4 FY16, reflecting an increase of 12.67%. Of this, US accounted for 90.75% of sales, Canada 7.40%, Asia 0.74%, and other regions 1.11%.
The Banana Republic Global segment's net revenues surged 2.68% to $727 million during Q4 FY17 from $708 million in Q4 FY16. Of this, US accounted for 85.42% of sales, Canada 9.49%, Europe 0.55%, Asia 3.71%, and other regions 0.83%.
The others segment generated net revenues of $284 million in Q4 FY17, an increase of 26.79% from $224 million in Q4 FY16. Of this, $283 million were in the US and the remaining $1 million in Canada.
Gap had cash and cash equivalents of $1.78 billion as on February 03, 2018, same as on January 28, 2017. The Company's long-term debt was $1.25 billion as on February 03, 2018, a slight increase of 0.08% y-o-y.
For the 53 weeks ending February 03, 2018, Gap's net cash flow from operating activities was $1.38 billion, 19.72% lower than $1.72 billion for the same period last year. The Company had a free cash flow of $715 million in FY17 compared to $1.2 billion in FY16, reflecting a decrease of 40.17%.
Gap's adjusted capital expenditures for the reported year were $564 million. During FY17, the Company distributed $676 million to shareholders through share repurchases and dividends.
For fiscal 2018, Gap expects DEPS of $2.55 to $2.70. The Company expects comparable sales to be flat or up slightly in FY18.
The Board of Directors (BoD) approved plans to increase the Company's annual dividend per share by over 5% to $0.97 in FY18. The BoD also declared Q1 FY18 dividend of $0.2425 per share, payable on or after May 02, 2018, to shareholders of record at the close of business on April 11, 2018.
Besides, the Company intends to continue its share repurchase program, with the plan to repurchase around $100 million per quarter.
Stock Performance Snapshot
April 11, 2018 - At Wednesday's closing bell, The Gap's stock was marginally down 0.75%, ending the trading session at $30.55.
Volume traded for the day: 4.57 million shares.
Stock performance in the previous six-month period ? up 6.33%; and past twelve-month period ? up 25.72%
After yesterday's close, The Gap's market cap was at $12.33 billion.
Price to Earnings (P/E) ratio was at 13.67.
The stock has a dividend yield of 3.18%.
The stock is part of the Services sector, categorized under the Apparel Stores industry.
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