By Yasin Ebrahim
Investing.com - Gap reported second-quarter results that came in better than expected, led by strong online growth.
Gap (NYSE:GPS) shares gained 6.96% in after-hours trade following the report.
Gap announced earnings per share of $-0.17 on revenue of $3.28B. Analysts polled by Investing.com anticipated EPS of $-0.4 on revenue of $2.88B.
Comparable sales grew 13%, compared with expectations for a 25.3% decline, thanks to a 95% increase in online net sales year-over-year.
Athleisure brand Athleta was the only segment to report positive net sales, though all saw increases in online revenue.
Gross margin was 35.1%, a decline of 3.8% points versus last year, as a result of "increased shipping expense as online sales grew and the company leveraged its stores to fulfill strong online demand," the company said.
Gap shares are down 1% from the beginning of the year, still down 12.44% from its 52 week high of $19.86 set on September 12, 2019. They are under-performing the S&P 500 which is up 7.89% from the start of the year.
Gap's report follows an earnings beat by Amazon.com on July 30, who reported EPS of $10.3 on revenue of $88.91B, compared to forecasts EPS of $1.48 on revenue of $81.45B.
Alibaba ADR had beat expectations on August 20 with first quarter EPS of $14.82 on revenue of $153.75B, compared to forecast for EPS of $13.82 on revenue of $148B.
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