The Gap Inc. (GPS) shares plunged 16.25% in after-hours on Tuesday, November 23, 2021, and closed the daily trading at $19.69. Even in the regular trading session, GPS’s stock lost 1.80%. GPS shares have fallen 9.79% over the last 12 months, and they have moved down 6.19% in the past week. Over the past three months, the stock has lost 14.45%, while over the past six months, it has declined 30.89%.
Let’s see what’s going on with the company?
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GPS latest news
On November 23, 2021, Gap Inc. (GPS) announced its financial results for the fiscal third quarter of 2021 which ended on October 30, 2021.
Q3 2021 financial highlights
- GPS net sales reduced to $3.9 billion in Q3 2021 compared to $3.99 billion in Q3 2020.
- The total cost of revenue was $2.28 billion in Q3 2021 compared to $2.37 billion in Q3 2020.
- Total operating expenses were $1.51 billion in Q3 2021 compared to $1.44 billion in Q3 2020.
- It suffered a net loss of $152 million or diluted loss per share of $0.40 in Q3 2021 compared to a net income of $95 million or diluted income per share of $0.25 in Q3 2020
- As of October 30, 2021, the company had $1.1 billion in cash, cash equivalents, and short-term investments.
FY 2021 financial guidance
For FY, 2021, GAP is now expecting,
- Diluted earnings per share to be in the range of $0.45 to $0.60.
- Full-year revenue growth to be about twenty per cent versus the fiscal year 2020.
- Operating margin to be about 4.5%.
GPS dividend declaration
On November 10, 2021, the Board of directors of Gap Inc. (GPS) authorized the fourth-quarter fiscal year 2021 dividend of $0.12 per share, payable on or after January 26, 2022, to shareholders of record at the close of business on January 5, 2022.
GPS Holiday 2021 Campaign
On October 25, 2021, this holiday season, Katy Perry joined forces with Gap Inc (GPS) to underscore the importance of love, kindness, and acceptance with its new campaign, ALL TOGETHER NOW. Katy’s bringing remix of “All You Need is Love,” brings Gap’s modern American optimism to life like never before.
GPS acquired CB4
On October 04, 2021, Gap Inc. (GPS) acquired the New York and Tel Aviv based start-up Context-Based 4 Casting Ltd (CB4).
Context-Based 4 Casting uses cutting-edge AI and machine learning tools to transform retail operations, increase sales and improve the customer experience through predictive analytics and demand sensing. As part of the acquisition, CB4’s team will join Gap Inc. as full-time employees.
Due to poor financial results, GPS stock had a bad Tuesday, and let’s see whether it can flip the negativity or not on Wednesday?