For those of you who dont recognize the ticker name, and dont want to search it, GPS isn't a mapping company, its the retail clothing store group consisting of The Gap, Banana Republic, Old Navy, and Athleta.
Their Q2 report is amc on Thursday. Other names like plce, cri, and gil have already reported with good results or movement. ANF and URBN report before GPS, and their report can give more insight on gps.
During Q2 plce, cri, and gil sales had decreased, but were better than expected. PLCE stated that sales were better due to strong e commerce, and unexpected early back to school shopping; which are two things GPS is capable of experiencing too. In Q1, both gps and plce expected the consumer to be wearker, however retail sales data was not bad. PLCE also guided for better margins in Q3 because of decreasing cotton and shipping prices, layoffs, and reduced inventory.
Retail Sales
Q2 was really strong, however clothing sales didnt experience any growth during May.
Cotton Prices
Cotton Prices lag by 6 months, this is the first Q where the decrease in cotton appears
GPS is also getting a new CEO, who was previously the COO at MAT. However this isnt a regular reshuffling of the execs, as GPS hasnt had a designated CEO since July 2022. If they don't manage to deliver with their financials, the guidance of finally getting a permanent CEO should be great.
Also:
their expected move is around 7-12%
citi recently gave positive outlook for their upcoming report
Part of the BECKY basket sorta lol
Bear notes:
The new ceo announcement could potentially be priced in, theyve gained 12% since
Q2 eps est are the highest theyve been in a year
Positions: I currently don't have anything open on GPS, I want to see how URBN and ANF do first
Their Q2 report is amc on Thursday. Other names like plce, cri, and gil have already reported with good results or movement. ANF and URBN report before GPS, and their report can give more insight on gps.
During Q2 plce, cri, and gil sales had decreased, but were better than expected. PLCE stated that sales were better due to strong e commerce, and unexpected early back to school shopping; which are two things GPS is capable of experiencing too. In Q1, both gps and plce expected the consumer to be wearker, however retail sales data was not bad. PLCE also guided for better margins in Q3 because of decreasing cotton and shipping prices, layoffs, and reduced inventory.
Retail Sales
Q2 was really strong, however clothing sales didnt experience any growth during May.
Cotton Prices
Cotton Prices lag by 6 months, this is the first Q where the decrease in cotton appears
GPS is also getting a new CEO, who was previously the COO at MAT. However this isnt a regular reshuffling of the execs, as GPS hasnt had a designated CEO since July 2022. If they don't manage to deliver with their financials, the guidance of finally getting a permanent CEO should be great.
Also:
their expected move is around 7-12%
citi recently gave positive outlook for their upcoming report
Part of the BECKY basket sorta lol
Bear notes:
The new ceo announcement could potentially be priced in, theyve gained 12% since
Q2 eps est are the highest theyve been in a year
Positions: I currently don't have anything open on GPS, I want to see how URBN and ANF do first
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