GAP
Earnings eve, and the analysts are still tweaking their math
Gap is set to report first-quarter earnings after the closing bell on Thursday, May 27, which means the usual pre-earnings ritual is in full swing: analysts are adjusting forecasts and pretending they definitely saw this coming all along.
Consensus now has Gap earning 48 cents a share, down a touch from 51 cents a year ago, while revenue is pegged at $3.52 billion versus $3.46 billion last year. Not exactly fireworks, but not a disaster either — the kind of setup that can move a stock if management so much as sneezes on the call.
The analyst buffet
A few names on Wall Street have been busy updating their models:
- BTIG’s Robert Drbul kept a Buy and trimmed his target to $28 from $31.
- TD Cowen’s Jonna Kim stayed bullish too, but cut her target to $26 from $32.
- JPMorgan’s Matthew Boss held an Overweight and lifted his target to $35.
- Citi’s Paul Lejuez stayed Neutral and nudged his target up to $27.
- Telsey’s Dana Telsey kept an Outperform and raised hers to $34.
In other words: nobody’s screaming disaster, but nobody’s exactly reaching for the champagne either. The Street seems to think Gap can deliver, but the bar is still set at “prove it.”
Why you should care
Gap shares already popped 2.4% to $24.05 on Wednesday, so the market is clearly leaning into the idea that this quarter could matter. And with Donald Kohler just named Banana Republic president and CEO on May 19, investors are getting a little more evidence that management is still reshuffling the deck.
Big picture: Gap doesn’t need a miracle. It just needs a clean print, solid guidance, and no awkward surprises — which, in retail, is basically the financial equivalent of asking for a unicorn in sensible shoes.