Hole (GPS) experiences Q1 2021 earnings beat

A Hole retailer in New York, August 2, 2020. Scott Mlyn | CNBC Hole stated Thursday its fiscal first-quarter gross sales surpassed pre-pandemic ranges, as consumers turned to Previous Navy and Athleta to refresh their wardrobes for summer time. The retailer raised its gross sales outlook for the complete yr, as Hole’s namesake banner in


A Hole retailer in New York, August 2, 2020.

Scott Mlyn | CNBC

Hole stated Thursday its fiscal first-quarter gross sales surpassed pre-pandemic ranges, as consumers turned to Previous Navy and Athleta to refresh their wardrobes for summer time.

The retailer raised its gross sales outlook for the complete yr, as Hole’s namesake banner in North America exhibits early indicators of enchancment and e-commerce development stays sturdy.

Hole’s inventory jumped round 2% on the information in prolonged buying and selling.

“Whereas lively and fleece proceed to soar, we noticed a resurgence in summer time style with clothes rebounding, exhibiting that prospects are rising from the disaster wanting to specific their model with out sacrificing the consolation and digital comfort they’ve turn into accustomed to,” CEO Sonia Syngal stated in an announcement.

Here is how Hole did through the interval ended Might 1, in contrast with what analysts had been anticipating, based mostly on Refinitiv estimates:

  • Earnings per share: 48 cents adjusted vs. a lack of 5 cents anticipated
  • Income: $3.99 billion vs. $3.45 billion anticipated

Hole swung to a revenue of $166 million, or 43 cents per share, from a lack of $932 million, or $2.51 per share, a yr earlier. Excluding one-time prices related to the sale of Janie & Jack and Intermix, Hole earned 48 cents per share through the quarter. That got here in properly forward of an anticipated 5 cent loss.

Whole income grew to $3.99 billion from $2.11 billion a yr earlier, when the retailer’s shops had been shut for a time period as a result of Covid pandemic. That topped estimates of $3.45 billion, in accordance with Refinitiv.

Hole estimated that the continued Covid-related closures in markets exterior of the US lowered gross sales by 2% from 2019 ranges through the newest interval. Total, fiscal first-quarter gross sales had been up 8% on a two-year foundation.

At Previous Navy, comparable gross sales had been up 35% yr over yr, and up 25% versus 2019. The Athleta enterprise noticed comparable gross sales rise 27% from final yr, and leap 46% on a two-year foundation.

At Hole’s namesake banner, comparable gross sales globally grew 29% from final yr, however had been down 1% on a two-year foundation. In North America, the model confirmed indicators of progress, with comparable gross sales within the area up 9% from 2019.

Banana Republic’s gross sales fell 4% on a comparable foundation yr over yr, and dropped 22% versus 2019, as fewer customers have been on the lookout for outfits to put on to work.

On-line gross sales grew 82% from two years prior, accounting for 40% of whole income. Retailer gross sales had been down 16% on a two-year foundation, primarily due to ongoing retailer closures and remaining Covid restrictions exterior of the US, Hole stated.

The retailer is now calling for adjusted earnings to be in a variety of $1.60 to $1.75 per share this yr, with internet gross sales rising within the low- to mid-twenty p.c vary from 2020. Beforehand, it was on the lookout for mid- to high-teens proportion gross sales development.

Analysts had been on the lookout for fiscal 2021 earnings per share of $1.38, with gross sales rising 17.8% yr over yr.

Hole shares closed Thursday up about 4%. The inventory has risen 74% yr up to now, placing its market cap at $13.2 billion. 

Discover the complete earnings press launch from Hole right here.



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