Revenue fell 0.3% year over year to $3.97 billion in the third quarter, missing analysts' estimates of $4.04 billion. The Gap reported earnings of 80 cents a share for the third quarter, beating analysts' estimates of 79 cents a share.
Comparable store sales fell 2% in the third quarter, compared to a 1% increase in the year-ago quarter. Gap brand comparable store sales fell 5%, Banana Republic comparable store sales were flat for the quarter, and Old Navy comparable store sales grew 1%.
Must Read: Warren Buffett's 25 Favorite Stocks
TheStreet Ratings team rates GAP INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate GAP INC (GPS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, attractive valuation levels and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow."