The American clothing retailer Gap Inc (NYSE: GPS) announced third-quarter financial results after the market close on Tuesday. The company last quarter earnings came below the Wall Street expectations and the revenue for the quarter fell 0.2% to $3.99 billion from $4.00 billion last year, while it beat the estimates of $3.82 billion.
Earnings per share (EPS): $.25 vs. $.32 expected
Revenue: $3.99 billion vs. $3.82 billion expected
On the positive side, the company online sales increased 61% during the last quarter and added more than 3.4 million new customers online. The retailer said it will not be providing a fiscal year earnings outlook as the continued rise in coronavirus cases remains a concern.
“The widely-noted recent rise in COVID-19 cases remains a concern, which may impact store traffic. However, with rapidly growing online sales contribution, at over 40% of company sales in the quarter, and the opportunity for market share gains, supported by the significant investment in marketing, the company remains optimistic for the fourth quarter” the company said.
The $GPS stock slipped more than 20% lower on Wednesday after weaker-than-expected financial results while the shares have increased 52% since the beginning of the year.