The Gap, Inc. (NYSE: GPS)
The Gap, Inc. (GPS), a global leading apparel retail company yesterday reported their holiday sales results. Gap reported that net sales were up 1% and comparable sales were up 2% for the November and December holiday season compared to the previous year. Sales for the five week period that ended on December 31st increased 3% to $2.07 billion up from the $21. Billion from the same period last year.
The Gap, Inc. CFO’s Comments
“We're pleased with the improved momentum we saw over the holiday season, driven primarily by a positive customer response at Gap and Old Navy,” said Sabrina Simmons, chief financial officer, Gap Inc. “Based on these results, we now expect full-year adjusted earnings per share to be modestly above the high end of our previous adjusted guidance range of $1.92.“ Business Wire
GPS Technical Analysis
GPS opened trading yesterday at $22.97 which was down from the previous day’s trading close of $24.20. GPS closed trading yesterday at $23.25 and spiked up after market to $25.12, equivalent to a 8% increase from the closing price. Taking a look at the daily chart we can see that the last time GPS traded above these levels we have to go back to December 15th, 2016 when it traded at $25.57. Taking a closer look at the daily chart we can see that before the spike up GPS had been in an overall downward trend dating back to November 17th when it traded at $30.71.
GPS has a float of 228.44 million shares and traded 2.07 times the normal daily trading volume on Thursday. For trading purposes, I would like to see GPS open trading on Friday above $24.50 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.25 from my entry position fearing anything more than that and the stock would start to fill in the gap up.
Company Profile
The Gap, Inc. (Gap Inc.), incorporated on April 15, 1988, is an apparel retail company. The Company offers apparel, accessories and personal care products for men, women and children under the Gap, Banana Republic, Old Navy, Athleta and Intermix brands. Its products are available to customers online through Company-owned Websites and through the use of third-parties that provide logistics and fulfillment services. It also sells products that are designed and manufactured by branded third-parties, especially at its Intermix brands. The Company's segments include Gap Global, Old Navy Global, Banana Republic Global, Athleta and Intermix. The Company's omni-channel services, including order-in-store, reserve-in-store, find-in-store and ship-from-store, are tailored across its portfolio of brands. Gap Inc. has Company-operated stores in the United States, Canada, the United Kingdom, France, Ireland, Japan, Italy, China, Taiwan and Hong Kong. It operates Gap, Banana Republic and Old Navy stores throughout Asia, Australia, Europe, Latin America, the Middle East and Africa. Reuters
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