The stock of Gap Inc. (GPS) opened on Friday at $16.39, marking a 20% increase from the previous day’s closing price of $13.67. Throughout the morning trading session, the stock continued to climb and reached a 21-month high, surging by 30.9%. This remarkable surge was driven by Gap’s impressive quarterly profit results, surpassing expectations by a significant margin.
Gap’s success can be largely attributed to the strong performance of its Old Navy stores. The apparel retailer’s stock was on track to achieve its best one-day percentage gain since it first started trading in May 1976. According to FactSet data, this would beat the current record gain of 29.5%, which was observed on March 24, 2020. Furthermore, Gap is set to obtain its highest weekly gain of 32.8% since the week ending June 5, 2020, which saw a remarkable rally of 38.3%.
Analyzing Gap’s performance among other retailers, Wells Fargo analyst Ike Boruchow hailed the company as his top pick. Despite facing a challenging benchmark, Gap managed to deliver the most compelling beat this earnings per share (EPS) season. This outstanding achievement distinguishes Gap from its counterparts and highlights its resilience in the market.
Over the past three months, Gap’s stock has skyrocketed by an impressive 76.5%. In contrast, the SPDR S&P Retail ETF (XRT) has experienced a slight decline of 1.3%, while the S&P 500 (SPX) has gained 3.1%. These figures further emphasize Gap’s exceptional performance and position within the retail sector.
In conclusion, Gap Inc. has achieved extraordinary success in surpassing profit expectations and outperforming other retailers. With its Old Navy stores leading the way, Gap continues to cement its position as a top competitor in the industry. Investors are eagerly watching as the stock records historic gains and demonstrates its resilience amid challenging market conditions.