Gap Inc. (NYSE: GPS) reported third quarter financial results. The company announced earnings per share of USD 0.37 on a reported basis while USD 0.53 on an adjusted basis. “We are not pleased with the third quarter results and are focused on aggressively addressing the operational issues that are hindering the performance of our brands,” said Robert J. Fisher, Gap Inc. interim president and chief executive officer. “We continue to make progress against our separation plans, which will provide improved focus and a further catalyst for transformation.”
Gap reported comparable sales that fell negative 4%. Comparable sales for Banana Republic dropped down negative 3% while Gap Global dropped to negative 7%. Net sales were USD 4 Billion, a 2% decrease from last year. Gross profits amounted to USD 1.56 Billion while gross margins reached 39%. Operating margins reached 5.5% while adjusted operating margins reached 7.5%.
The company expects earnings per share to fiscal year 2019 to range from USD 1.38 to USD 1.47. Adjusted earnings per share guidance is expected to range between USD 1.70 and USD 1.75. Anticipated share repurchases are expected to amount to USD 50 million in Q4.
Capital spending is expected to reach USD 835 Million for fiscal year 2019. This includes roughly USD 160 Million of separation associated capital spend and roughly USD 100 million of expansion costs to the headquarters building and its Ohio distribution center.
Shares of Gap Inc. rose over 3% on Friday post announcement.