GAP Stock Rises Before Q3 Earnings, But Retail Sentiment Slides

Shares of apparel company Gap Inc. ($GAP) were up nearly 3.7% on Thursday afternoon ahead of its third-quarter earnings, but retail sentiment fell.

According to an analysis by Visible Alpha, five analysts have a “buy or equivalent” rating for the company’s stock, with a consensus price target of $27, Investopedia reported. For the third quarter, the consensus from analysts is for the company’s revenue to rise 1% to $3.81 billion year-over-year (YoY). Meanwhile, earnings per share is expected to go from $0.55 to $0.58.

For its second quarter, comparable sales went up 3% (YoY), indicating improved same-store sales performance. Net sales rose 5% YoY to $3.7 billion in the last quarter. San Francisco-based GAP’s brands include Old Navy, Gap, Banana Republic, and Athleta.

Retail sentiment on the stock fell to ‘extremely bearish’’ (23/100) from ‘neutral’ (46/100) a day ago. Message volumes climbed to  ‘extremely high’ levels.

GAP sentiment and message volumes on Nov 21 as of 2:10 pm ET

Earlier this month, the company declared a fourth-quarter fiscal year 2024 dividend of $0.15 per share, payable on or after January 29, 2025.

“Gap delivered another successful quarter, exceeding financial expectations and gaining market share for the 6th consecutive quarter," president and CEO, Richard Dickson, said at the time of its last results.

Meanwhile, one Stocktwits user noted high options activity on the company’s stock ahead of the earnings announcement.

While another noted the short interest in the company’s shares, which could be a catalyst for the stock to squeeze higher if its quarterly results impress.

GAP stock is up 2.5% year-to-date.