GPS – Market expectations are Uniform ROA to remain at current levels, but management is confident in their initiatives, experience, and spin-off costs

May 21, 2019

  • The Gap, Inc. (GPS:USA) currently trades near recent averages relative to UAFRS-based (Uniform) Earnings, with a 16.4x Uniform P/E. At these levels, markets are pricing in expectations for profitability to remain at current levels, but management is confident in their specialty channel profitability initiatives, customer experience, and ability to minimize spin-off costs
  • Specifically, management is confident in the progress of specialty channel profitability initiatives, the benefits of their share repurchasing efforts, and that Gap specialty store restructuring will improve customer experience. Moreover, they are confident they will not be stalled by Old Navy spin-off issues, and are confident in the closure of unprofitable stores and their ability to minimize inventory write-offs.

You don’t have access to the Valens Research Premium Application.

To get access to our best content including the highly regarded Conviction Long List and Market Phase Cycle macro newsletter, please contact our Client Relations Team at 630-841-0683 or email

Please fill out the fields below so that our client relations team can contact you

Or contact our Client Relationship Team at 630-841-0683