The Gap Inc. (GPS) shares surged 7.02% in after-hours on Thursday, August 26, 2021, and closed the daily trading at $28.20. In the regular trading session of Thursday, GPS’s stock lost 4.11%. GPS shares have risen 54.73% over the last 12 months, and they have moved down 3.90% in the past week. Over the past three months, the stock has lost 25.04%, while over the past six months, it has declined 5.61%.
Let’s see what are the latest news about the company?
GPS latest development
On August 26, 2021, Gap Inc (GPS) reported its second-quarter fiscal year 2021 financial results, which ended on July 31, 2021.
Q2 2021 financial highlights
- GPS reported net sales of $4.2 billion in Q2 2021 compared to $3.3 billion of sales in Q2 2020.
- Gross profit was $1.82 billion in Q2 2021 compared to $1.15 billion in Q2 2020.
- Total operating expenses were $1.4 billion in Q2 2021 compared to $1.08 billion in Q2 2020.
- Net income (loss) was $258 million in Q2 2021 compared to $62 million in Q2 2020.
- Diluted earnings per share were $0.67 in Q2 2021 compared to $0.17 in Q2 2020.
- As of July 31, 2021, the company had $2.7 billion in cash, cash equivalents, and short-term investments.
Updated FY 2021 financial outlook
For FY 2021, the company is now expecting
- Net sales growth to be about 30% versus 2020.
- Diluted earnings per share in the range of $1.90 to $2.05.
- Operating margin to be approximately 7.0%.
- Capital spending to be approximately $800 million in the fiscal year 2021.
GPS acquired Drapr
On August 26, 2021, Gap Inc (GPS) acquired Drapr. It is designed to help customers find the best clothing size and fit for their style and body type while helping retailers reduce unnecessary returns.
Drapr was founded by David Pastewka, Will Drevno, and Richard Berwick, who have collaborated on 3D technology for over a decade with early support from Boost VC and Berkeley SkyDeck.
GPS dividend declaration
On August 10, 2021, the board of directors of Gap Inc (GPS) approved the third-quarter fiscal year 2021 dividend of $0.12 per share, payable on or after October 27, 2021, to shareholders of record at the close of business on October 6, 2021.
GPS new reward program
On July 22, 2021, Gap Inc (GPS) announced the launch of a new integrated Rewards program across the U.S. and Puerto Rico. The new program will simplify and streamline how members can earn and redeem their rewards within our four brands by combining the previous credit card and loyalty programs under Navyist Rewards, Gap Good Rewards, Banana Republic Rewards, and Athleta Rewards.
Conclusion
GPS stock surged in the after-hours after the company announced its exceptional financial results for Q2 2021 and announced an improved financial outlook for FY 2021. We can expect it to continue its positive momentum on Friday as well.

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