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Free Research Report as The Gap's Revenue Grew 1.1%; EPS Surged 13.7%

Stock Monitor: Cherokee Post Earnings Reporting

LONDON, UK / ACCESSWIRE / December 29, 2017 / Active-Investors.com has just released a free earnings report on The Gap, Inc. (NYSE: GPS). If you want access to this report all you need to do is sign up now by clicking the following linkwww.active-investors.com/registration-sg/?symbol=GPS. The Company posted its financial results on November 16, 2017, for the third quarter fiscal 2017. The apparel company's revenue and adjusted EPS surpassed analysts' expectations. Register today and get access to over 1000 Free Research Reports by joining our site belowwww.active-investors.com/registration-sg.

Active-Investors.com is currently working on the research report for Cherokee Inc. (NASDAQ: CHKE), which also belongs to the Services sector as the Company Gap. Do not miss out and become a member today for free to access this upcoming report at: www.active-investors.com/registration-sg/?symbol=CHKE.

Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, The Gap most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below: www.active-investors.com/registration-sg/?symbol=GPS.

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Earnings Highlights and Summary

For three months ended October 28, 2017, Gap's net revenue increased 1.1% to $3.84 billion from $3.80 billion in Q3 FY16. For the reported quarter, the Company's comparable sales growth was 3%. The Company's revenue surpassed analysts' expectations of $3.76 billion.

During Q3 FY17, Gap's gross profit increased 2.1% to $1.53 billion from $1.49 billion in the same period last year. For the reported quarter, the Company's gross margin increased 40 basis points to 39.7% of revenue from 39.3% of revenue in Q3 FY16. For the reported quarter, the Company's adjusted gross margin increased 60 basis points to 39.7% of revenue from 39.1% of revenue in Q3 FY16.

During Q3 FY17, Gap's operating income decreased 2.8% to $378 million from $389 million in the same period last year. For the reported quarter, the Company's operating margin decreased 40 basis points to 9.8% of revenue from 10.2% of revenue in Q3 FY16. For the reported quarter, the Company's adjusted operating margin decreased 120 basis points to 9.8% of revenue from 11.0% of revenue in Q3 FY16.

During Q3 FY17, Gap's earnings before tax (EBT) decreased 2.2% to $364 million from $372 million in the same period last year. For the reported quarter, the Company's EBT margin decreased 30 basis points to 9.5% of revenue from 9.8% of revenue in Q3 FY16.

For the reported quarter, Gap's net income increased 12.3% to $229 million on a y-o-y basis from $204 million in Q3 FY16. During Q3 FY17, the Company's diluted EPS increased 13.7% to $0.58 on a y-o-y basis from $0.51 in the same period last year. For the reported quarter, Gap's adjusted net income decreased 3.8% to 229 million from $238 million in Q3 FY16. During Q3 FY17, the Company's adjusted diluted EPS decreased 3.3% to $0.58 from $0.60 in the same period last year. Adjusted diluted EPS surpassed analysts' expectations of $0.54.

Balance Sheet

As on October 28, 2017, Gap's cash and cash equivalents decreased 11.1% to $1.35 billion from $1.52 billion on October 29, 2016. For the reported quarter, the Company's long-term debt decreased 5.5% to $1.25 billion from $1.32 million in Q3 FY16.

In the first nine months of 2017, the Company's net cash provided by operating activities decreased 25% to $600 million from $800 million in the same period last year. In the first nine months of 2017, the Company's free cash flow decreased 52.8% to $197 million from $417 million in the same period last year.

During Q3 FY17, the Company repurchased 3.8 million shares for $100 million.

Outlook

For FY17, the Company expects diluted EPS to be in the range of $2.18 to $2.22 and adjusted diluted EPS to be in the range of $2.08 to $2.12.

Stock Performance Snapshot

December 28, 2017 - At Thursday's closing bell, Gap's stock slightly dropped 0.14%, ending the trading session at $34.44.

Volume traded for the day: 1.61 million shares.

Stock performance in the last month - up 11.17%; previous three-month period - up 16.67%; past twelve-month period - up 51.72%; and year-to-date - up 53.48%

After yesterday's close, Gap's market cap was at $13.40 billion.

Price to Earnings (P/E) ratio was at 15.82.

The stock has a dividend yield of 2.67%.

The stock is part of the Services sector, categorized under the Apparel Stores industry. This sector was up 0.1% at the end of the session.

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