Gap (GAP) Reports Q4: Everything You Need To Know Ahead Of Earnings

Clothing and accessories retailer Gap (NYSE:GAP) will be reporting results this Thursday after market hours. Here’s what to expect.

Gap beat analysts’ revenue expectations last quarter, reporting revenues of $3.94 billion, up 3% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ gross margin estimates.

This quarter, the market is expecting Gap’s revenue to grow 2.3% year on year, a reversal from the 3.5% decrease it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Gap rarely misses Wall Street’s revenue estimates.

Looking at Gap’s peers in the apparel and footwear retail segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Urban Outfitters delivered year-on-year revenue growth of 10.1%, beating analysts’ expectations by 0.6%, and Boot Barn reported revenues up 16%, in line with consensus estimates. Urban Outfitters traded up 5% following the results while Boot Barn was also up 2.9%.

The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the apparel and footwear retail stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.6% on average over the last month. Gap is down 5.2% during the same time and is heading into earnings with an average analyst price target of $30.71 (compared to the current share price of $27.17).

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