Gap Inc. (GPS, Financial) is traded at a P/S ratio of 0.57, close to its 10-year low of 0.46. The company is owned by 10 gurus.
Gap has a market cap of $8.31 billion; its shares were traded around $20.88 with a P/E ratio of 10.57 and P/S ratio of 0.57. Gap's trailing 12-month dividend yield is 4.42%. The forward dividend yield is 4.46%. Gap had an annual average earnings growth of 10.40% over the past 10 years. GuruFocus rated Gap the business predictability rank of 4-star.
Over the past five years, Gap's stock price has increased by 21%. The company’s revenue has also decreased. This is explained as an effect of unfavorable foreign exchange rates.
Gap is focused on improving sales performance by offering more consistently on-trend products. The company’s expenses increased during fiscal year 2015 due to increased markdown activities and cost of implementing strategic actions. Therefore, gross margins were negatively affected and the company expects this to continue throughout fiscal year 2016.
GuruFocus has found one severe warning sign for GPS:
- Declining operating margin.
Gap reported revenue of $3.44 billion and net income of $127 million in its first-quarter financial results. This is compared to last year’s first-quarter revenue of $3.66 billion and net income of $239 million. The company recognized a decrease of 5% in comparable store sales for this quarter.
Recent trades
Edward Lampert (Trades, Portfolio) and David Dreman (Trades, Portfolio) both initiated their positions in Gap. Barrow, Hanley, Mewhinney & Strauss kept its position unchanged. Steve Mandel (Trades, Portfolio) sold out his holdings.
EVP and CFO Sabrina Simmons sold 29,961 shares of Gap stock in March. Global President, Banana Republic Andi Owen and EVP, Digital & Customer Exp. Solomon Goldfarb together sold 11,381 shares of GPS stock in March.
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