What happened
The stock market as a whole sagged on Friday, but you wouldn't know it from the performance of The Gap's (GPS -1.28%) shares. The veteran clothing company's stock traded sideways on the day thanks to better-than-expected quarterly results.
So what
For its fourth quarter of its fiscal 2021, The Gap posted net sales of $4.5 billion. That was 2% higher on a year-over-year basis and essentially matched the average analyst estimate. It was also on the back of a comparable-sales figure that rose by 3%.
Image source: The Gap.
On the bottom line, the retailer flipped to a loss of $16 million from the year-ago profit of $234 million. On an adjusted, per-share basis, the shortfall was $0.02 -- far better than the collective prognosticator estimate of $0.12.
The coronavirus pandemic may be receding, but The Gap's results still trail those of 2019 as the company contends with current supply chain issues. The company is recovering notably, though; the latest net sales figure was only 3% below the same period of 2019.
The Gap quoted its CEO Sonia Syngal as saying that
After two years of restructuring, including divesting smaller non-strategic brands, transitioning our European market to an asset-light partnership model and shedding underperforming North American stores, our core business is strong and we are poised for balanced growth across our four billion-dollar lifestyle brands.
Now what
The Gap also proffered encouraging guidance for fiscal 2022. It believes its top line will expand in the low single-digit range compared to 2021, while adjusted per-share net earnings should land between $1.85 to $2.05. Investors were likely cheered by the latter range as this implies a good chance of exceeding the consensus $1.86 analyst estimate for the period.
