Apparel retailer The Gap Inc. ( GPS ) late Thursday posted a 19% decline in second quarter earnings, but results were still enough to beat analyst expectations.
The San Francisco-based company reported second quarter net income of $189 million, or 35 cents per share, compared with $234 million, or 36 cents per share, in the year-ago period.
Net sales rose 2% from last year to $3.39 billion.
On average, Wall Street analysts expected a smaller profit of 33 cents per share on lower revenue of $3.35 billion.
Looking ahead, the company backed its previously-announced full-year earnings outlook of $1.40 to $1.50 per share. Analysts are looking for $1.47 per share for the year.
The Gap shares were mostly flat in premarket trading Friday.
The Bottom Line
Shares of The Gap ( GPS ) have a 2.90% dividend yield, based on last night's closing stock price of $15.52. The stock has technical support in the $14 price area. If the shares can firm up, we see overhead resistance around the $18 price level.
The Gap Inc. ( GPS ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.
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