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Bull of the Day: Gap Inc. (GPS) - Bull of the Day

Gap Inc.'s ( GPS ) third-quarter 2012 earnings of $0.63 per share came in line with the Zacks Consensus Estimate, and surged 66% from the year-ago quarter on the back of increased sales along with improved margins and a lower share count. During the quarter, Gap's net sales increased 8.0% year over year to $3,864 million.

The solid quarterly performance prompted management to raise its fiscal 2012 earnings guidance range to $2.20-$2.25 per share from $1.95-$2.00 forecasted earlier. We believe that Gap's determined endeavors to keep itself on the growth trajectory have paid off amid a sluggish economic environment.

Moreover, the company is undertaking an international expansion strategy. The company, to counter the domestic market saturation, is aiming total sales of approximately 30% from its overseas operations and online business by 2013. Currently, we are maintaining our long-term Outperform recommendation on the stock.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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