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Gap's Margins Soar, Sales Dip

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Gap's Margins Soar, Sales Dip

B
Benzinga

6 Views • May 26, 2023

Description

Gap reported a net loss and declining sales for the first quarter but highlighted margin improvements. The company's adjusted earnings per share exceeded expectations, and despite the negative results, Gap's shares saw a significant increase in after-hours trading. Gap has been undergoing restructuring efforts and cost-cutting measures, including layoffs and reducing management layers. Sales were down in stores and online, although digital sales have rebounded to pre-pandemic levels. The company's gross margins improved due to lower expenses and reduced discounting.