Shares of The Gap Inc. (GPS, Financial) were down almost 10% on Friday after reporting second-quarter results on Thursday. The retailer posted earnings per share of 76 cents on $4.09 billion in revenue, reflecting 7.6% year-over-year growth. The company beat earnings estimates by 4 cents and revenue expectations by $80 million.
“We delivered our seventh consecutive quarter of positive comparable sales growth, led by the strength of Old Navy,” President and CEO Art Peck said. “Our balanced growth strategy supports continued growth and improved profitability, and our investments are focused on leveraging the advantages of our scaled operating platform and accelerating the impact of our significant data assets.”
The gross profit was $1.63 billion, an increase of 10% from last year. The gross margin was 39.8%. The operating margin was 9.7%.
During the quarter, the company repurchased 3.2 million shares for $100 million.Ă‚
Looking ahead, the company reaffirmed its full-year earnings per share guidance of $2.55 to $2.70.
Shares of Ross Stores Inc. (ROST, Financial) fell more than 1% in premarket trading on Friday after reporting second-quarter results on Thursday. The discount retail chain posted earnings per share of $1.04 on revenue of $3.74 billion. The company beat earnings estimates by 3 cents and revenue expectations by $80 million.
Looking ahead to the third quarter, the company expects earnings between 84 cents and 88 cents per share.
Shares of Splunk (SPLK, Financial) jumped more than 13% on second-quarter 2019 earnings per share of 8 cents. The company's revenue grew 38.7% to $388.3 million. The company beat earnings estimates by 3 cents and revenue expectations by $29.79 million.
The company guided for third-quarter revenue of $430 million to $432 million. The non-GAAP operating margin is expected to be 13%.
Disclosure: The author holds no positions in any stocks mentioned.
