EmailGap (GPS $16.10 +0.58) reported second quarter earnings of $0.35 per
share, $0.01 better than the Capital IQ Consensus Estimate of $0.34.
Revenues rose 2.1% year/year to $3.39 billion versus the $3.34 billion
consensus.
For its fiscal year 2012, the company expects to see earnings of $1.40 to $1.50
versus the $1.47 Capital IQ Consensus Estimate.
The company reported that inventory dollars per store were up 5 percent at the
end of the second quarter of fiscal year 2011 compared with the second quarter
of last year, in line with guidance. As stated earlier this month, the company
implemented improvements during the second quarter that enhanced the precision
of estimating in-transit inventory.
This change did not have any impact to the company's income statement. The company expects inventory units per store to be down in the third quarter. However, the company expects inventory dollars per store at the end of the third quarter to be up in the high single digits compared with the third quarter of last year, driven primarily by product cost increases.
