Gap Announced That Its First Quarter Earnings Exceeded Wall Street Expectations, An Increase Of 43% Over The Same Period.

< p > Gap announced that its first quarter earnings exceeded Wall Street expectations, thanks to the increase in its same store sales of its Old Navy brand and Gap chain stores, and the growth of the Asian market. The retailer with a banana republic chain reported a net profit of $333 million in the first quarter, or 71 cents per share, up 43% in May 4th, up from $223 million last year and a net profit of 47 cents a share. < /p >
< p > Gap sales increased by 7% in the first quarter, to $3 billion 730 million, up from $3 billion 490 million in the same period last year and 2% in the same store. According to Thomson Reuters survey, analysts had expected the retailer to make a profit of 69 cents per share and $3 billion 680 million in revenue in the first quarter. < /p >
< p > despite the rising profits, Gap still reiterates its annual performance guidance and expects annual profit of $2.52 to $2.60 per share. 86% of the company's revenues come from the North American market and has entered new international markets. But the results were mixed. Sales in the European market were basically flat, because local consumers continued to cut spending, while Asian market revenue increased by 14.7%. Gap opened Gap stores in the Chinese market and opened Old Navy stores in the Japanese market. < /p >
< p > despite the fact that the retailer's recent business environment has become increasingly difficult and the US consumers are facing the pressure of rising cost of living and constant income, the retail sector has achieved better than expected results this quarter. Messi's Department reported its earnings on Wednesday, with quarterly earnings exceeding analysts' expectations and strong sales performance, prompting the company to raise its dividend. The secret of retail chain store Vitoria and Bath & Body Works's parent company L Brands exceeded Wall Street's first quarter earnings, earning 48 cents a share, with sales of $2 billion 270 million. < /p >
< p > however, the performance of other retailers is poor. As a competitor to Gap, Aeropostale, a youth chain brand, announced a 14% drop in its same store sales in the first quarter, blamed on bad weather and severe economic conditions. Penny's quarterly loss was more than expected, mainly because the CEO Ron Johnson resigned to adjust his business. WAL-MART, the biggest retailer in the US, reported less than expected Wall Street sales, blamed on the decline in sales in the US market. < /p >