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Gap: annual targets raised again

(CercleFinance.com) - On its quarterly earnings call on Thursday evening, Gap announced higher targets for FY 2024, now aiming for operating profit growth in the mid to upper 60% range (instead of around 50%).
NB: pmt +19%.

Similarly, the clothing chain now anticipates a 220 bp gross margin expansion (instead of 200bp) and 52-week sales growth of 1.5% to 2% (no longer "slightly up").

For Q3, Gap posted EPS of $0.72 and an operating profit of $355m, representing a 270-bp increase in its margin to 9.3%, for a gross margin that improved by 140bp to 42.7%.

The San Francisco-based group's sales rose 2% to $3.8bn (+1% on a comparable basis), with a 2% drop in in-store sales offset by a 7% increase in online sales, which accounted for 40% of the total.


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