Gap Reports a $1.2B Loss, but Is Reopening Ahead of Schedule
Casual and lifestyle clothing retailer Gap (NYSE: GPS) reported its first-quarter 2020 results yesterday, unveiling both an operating loss of $1.2 billion and a faster-than-expected reopening. The company already posted a significant loss of $184 million in the last quarter of 2019, but following the impact of COVID-19, the first quarter of this year dwarfed that figure, representing its single biggest drop since its founding a half-century ago.
The company's earnings per share (EPS) and revenue both missed analyst consensus expectations. Its EPS under generally accepted accounting principles (GAAP) fell $2.17 short of expectations, with its $2.51 loss well below the forecast loss of $0.34 per share. Revenue fell more than 43% year over year to $2.11 billion, about $240 million less than anticipated.
Image source: Gap.
Source Fool.com
