(Tiper Stock Exchange) – Gapa US company active in the clothing sector with brands such as Old Navy, Gap, Banana Republic and Athleta, closed its second quarter of fiscal year 2023 (ended July 29) with net sales $3.55 billion, down 8% year-over-year (negative 1-point and 2-point FX impact from Gap China sale). The comparable sales they decreased by 6%.
The gross margin of 37.6% increased by 310 basis points in gross margin. L’Net income was $117 million, with earnings per share of $0.32, and adjusted net income was $127 million, with adjusted earnings per share equal to $0.34.
The analysts they expected average earnings per share of $0.09 on revenues of $3.57 billion, according to Refinitiv data.
“We are pleased to deliver significant operating margin expansion and a strong free cash flow during the second quarter, driven by modest gains in market share, our significant improvement in the inventory position and our actions to transform the company’s operating model and structure,” said the CFO Katrina O’Connell While we are encouraged by our short-term progress, we remain aware of the mixed economic and consumer environment in which we operate and continue to plan the business prudently.”
The society predicts that the net sales offiscal year 2023 they could decline in the mid-single-digit range from last year’s net sales of $15.6 billion. The company continues to expect gross margin expansion.