Executive Summary

• Gap reported 2Q16 adjusted diluted EPS of $0.60, beating the consensus estimate by a penny and versus guidance of $0.58–$0.59. The figure excluded a $0.29 impact associated with the company’s restructuring plans.
• Total revenues were $3.85 billion, down 1.2% from $3.90 billion in the year-ago quarter. By brand, Gap comps were down 3%, Banana Republic comps were down 9% and Old Navy comps were flat.
• Management updated its full-year diluted EPS guidance to $1.37–$1.47. Excluding the negative impact of restructuring costs, which is expected to be $0.45–$0.50, the company expects its adjusted diluted EPS to be $1.87–$1.92.