NEW YORK (TheStreet) -- Shares of The Gap Inc. (GPS - Get Report) are lower by -5.56% to $44 in after-hours trading on Thursday, after the company reported a 2% decline in August same-store-sales, missing the 1.6% rise analysts polled by Thomson Reuters were expecting.
The clothing and accessories retailer said August 2014 total net sales were $1.23 billion, which is flat compared with August 2013.
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- GPS's revenue growth has slightly outpaced the industry average of 0.5%. Since the same quarter one year prior, revenues slightly increased by 2.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.47, is low and is below the industry average, implying that there has been successful management of debt levels.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Specialty Retail industry and the overall market, GAP INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
- GAP INC has improved earnings per share by 17.2% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, GAP INC increased its bottom line by earning $2.75 versus $2.32 in the prior year. This year, the market expects an improvement in earnings ($2.95 versus $2.75).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Specialty Retail industry average. The net income increased by 9.6% when compared to the same quarter one year prior, going from $303.00 million to $332.00 million.
- You can view the full analysis from the report here: GPS Ratings Report