GAP stock (GPS:NYE) fell 8.2% after reporting mixed performance for the fourth quarter of Fiscal Year 2022. The reduction in quarterly performance was mostly attributable to a decrease in discretionary consumer expenditure as a result of high inflation.
While the company posted an adjusted loss of $0.40 per share, which was less than anticipated, revenue decreased 6% year-over-year to $4.24 billion, missing forecasts. In addition, Gap stock witnessed a decline in certain categories, but the women’s category remained robust.
Gap has announced intentions to streamline management to increase efficiency and speed up decision-making, which is anticipated to save the corporation $300 million per year. Comparing Fiscal Year 2022 to Fiscal Year 2023, the business anticipates a mid-single-digit loss in net sales for the first quarter of Fiscal Year 2023 and a low-to-mid-single-digit decline in net sales for Fiscal Year 2023.
Despite having an average price target of $12.15, which represents an upside potential of 8.8% from the current price, Gap stock has been assigned a consensus rating of “Underperform”. GAP stock has gained about 2.2% so far this year.
