Executive Summary

• Gap reported fiscal 1Q19 revenues of $3.71 billion, down 2.0% year over year and below the consensus estimate of $3.77 billion. Earnings per share (EPS) were $0.24, down 42.9% from the year-ago period, and lower than the consensus estimate of $0.32.
• Comparable sales were down 4.0% compared with the consensus estimate of (1.5)%, and down from the year-ago period of a 1% increase.
• For the full fiscal year, the company lowered its earnings per share guidance to the range of $2.04-2.14, down from $2.40-2.55. The company lowered guidance for comparable sales for fiscal year 2019, and expects comps to decline by low single digits, compared to its previous guidance of flat to up slightly and versus the consensus estimate of 0.2%.