Gap Inc GPS reported third-quarter financial results after the close and investors seem to like what they saw. The stock is up more than 8% on better-than-expected results.
What Happened: Gap reported third-quarter revenue of $4.04 billion, which beat average analyst estimates of $3.8 billion, according to Benzinga Pro. The retailer reported quarterly adjusted earnings of 71 cents per share.
Gap also noted that it recorded a $53 million impairment charge in the third quarter related to Yeezy Gap.
"We have sharpened our focus on execution to optimize profitability and cash flow, are bringing more rigor to our operations, and balancing our assortments in response to what our customers are telling us," said Bob Martin, executive chairman and interim CEO of Gap.
Gap said it ended the quarter with $679 million in cash and equivalents. Its inventory position was up 12% year-over-year to $3.04 billion.
"While our efforts show early signs of improvement, we are clear that there is work to be done to deliver what our customers, employees and shareholders expect from Gap Inc," Martin added.
In the short term, Gap said it plans to remain focused on the actions necessary to reduce inventory, rebalance assortments, reevaluate investments and fortify its balance sheet.
The company anticipates that total revenue could be down mid-single digits year-over-year in the fourth quarter.
See Also: Why Gap, Macy's And Williams-Sonoma Shares Traded Lower Today
GPS Price Action: Gap has a 52-week high of $25.42 and a 52-week low of $7.79.
The stock was up 6.2% in after hours at $13.52 at time of publication.
Photo: courtesy of Gap.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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