Gap (GPS) 1Q16 Results: Gap Outlines Changes for the Long Term

Executive Summary

• Gap Inc. reported 1Q EPS of $0.32, in line with consensus and the updated guidance provided on May 9th. Currency fluctuation negatively impacted EPS by $0.02.
• As previously reported, total revenues were $3.44 billion. Comps were down 5%.
• Management is not reaffirming its full-year EPS guidance. The company noted that the current consensus of $1.92 “falls within a reasonable range of potential outcomes.” The company also noted that trends in the apparel retail environment would need to improve from 1Q for EPS to get to $1.92.