Gap Seen With Balanced Upside/Downside Skew Around Upcoming Fiscal Q2 Earnings, UBS Says

MT Newswires Live08-19 23:56

Gap (GAP) is seen having a balanced upside/downside skew around its upcoming fiscal Q2 earnings, UBS said in a note emailed Wednesday.

The company is set to report fiscal Q2 financial results on Aug. 27.

UBS analysts expect Old Navy's fiscal Q2 comparable store sales to have a larger decline than the consensus estimate of a 2% decrease, due to its recovery from a Q1 seasonal category underperformance still ongoing and World Cup inventory selling worse than expected. This factor is the main downside risk, as it could raise investor concerns on the recovery pace of sales for H2, according to the note.

On the other hand, the analysts see potential upside to fiscal 2026 gross margins if tariff changes implemented after July allows the company to release its financial reserve set aside for tariff-related costs.

The analysts said they concur with the options market that the earnings report could be a "high-volatility event."

UBS' rating on the company's stock is buy with a price target of $40.

Price: 20.10, Change: +0.02, Percent Change: +0.07

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2660442415?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2026-08-19 23:56","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2660442415","market":"sg","top_or_hot":-1,"title":"Gap Seen With Balanced Upside/Downside Skew Around Upcoming Fiscal Q2 Earnings, UBS Says","media":"MT Newswires Live","content":"<html><body><p> <a href=\"https://laohu8.com/S/GAP\">Gap</a> (GAP) is seen having a balanced upside/downside skew around its upcoming fiscal Q2 earnings, UBS said in a note emailed Wednesday.</p><p>The company is set to report fiscal Q2 financial results on Aug. 27.</p><p>UBS analysts expect Old Navy's fiscal Q2 comparable store sales to have a larger decline than the consensus estimate of a 2% decrease, due to its recovery from a Q1 seasonal category underperformance still ongoing and World Cup inventory selling worse than expected. This factor is the main downside risk, as it could raise investor concerns on the recovery pace of sales for H2, according to the note.</p><p>On the other hand, the analysts see potential upside to fiscal 2026 gross margins if tariff changes implemented after July allows the company to release its financial reserve set aside for tariff-related costs.</p><p>The analysts said they concur with the options market that the earnings report could be a \"high-volatility event.\"</p><p>UBS' rating on the company's stock is buy with a price target of $40.</p><p>Price: 20.10, Change: +0.02, Percent Change: +0.07</p></body></html>","source":"mtnewswires_news","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Gap Seen With Balanced Upside/Downside Skew Around Upcoming Fiscal Q2 Earnings, UBS Says</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nGap Seen With Balanced Upside/Downside Skew Around Upcoming Fiscal Q2 Earnings, UBS Says\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1092851196\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://community-static.tradeup.com/news/3002d84abbd5ace3c99397c7f95b8d4e);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">MT Newswires Live </p>\n<p class=\"h-time\">2026-08-19 23:56</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<html><body><p> <a href=\"https://laohu8.com/S/GAP\">Gap</a> (GAP) is seen having a balanced upside/downside skew around its upcoming fiscal Q2 earnings, UBS said in a note emailed Wednesday.</p><p>The company is set to report fiscal Q2 financial results on Aug. 27.</p><p>UBS analysts expect Old Navy's fiscal Q2 comparable store sales to have a larger decline than the consensus estimate of a 2% decrease, due to its recovery from a Q1 seasonal category underperformance still ongoing and World Cup inventory selling worse than expected. This factor is the main downside risk, as it could raise investor concerns on the recovery pace of sales for H2, according to the note.</p><p>On the other hand, the analysts see potential upside to fiscal 2026 gross margins if tariff changes implemented after July allows the company to release its financial reserve set aside for tariff-related costs.</p><p>The analysts said they concur with the options market that the earnings report could be a \"high-volatility event.\"</p><p>UBS' rating on the company's stock is buy with a price target of $40.</p><p>Price: 20.10, Change: +0.02, Percent Change: +0.07</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"RGLO","symbol_name":"Global Equity Active ETF","start_time":0,"source_url":"https://www.mtnewswires.com/","article_id":"2660442415","we_media_id":"1092851196","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2660442415","pubTimestamp":1787154988,"columns":[],"sourceInfo":{"source_id":"mtnewswires_news","name":"MT Newswires"},"weMediaInfo":{"media_name":"MT Newswires Live","introduction":"The most recognized names in North America, Europe and Asia rely on MT Newswires to power their applications. Better news, better service, better price.","home_visible":1,"id":"1092851196","head_image":"https://community-static.tradeup.com/news/3002d84abbd5ace3c99397c7f95b8d4e"},"summary":"Gap  is seen having a balanced upside/downside skew around its upcoming fiscal Q2 earnings, UBS said in a note emailed Wednesday.The company is set to report fiscal Q2 financial results on Aug. 27.UBS analysts expect Old Navy's fiscal Q2 comparable store sales to have a larger decline than the consensus estimate of a 2% decrease, due to its recovery from a Q1 seasonal category underperformance still ongoing and World Cup inventory selling worse than expected. This factor is the main downside risk, as it could raise investor concerns on the recovery pace of sales for H2, according to the note.On the other hand, the analysts see potential upside to fiscal 2026 gross margins if tariff changes implemented after July allows the company to release its financial reserve set aside for tariff-related costs.The analysts said they concur with the options market that the earnings report could be a \"high-volatility event.\"UBS' rating on the company's stock is buy with a price target of $40.Price: 2","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"RGLO":"Global Equity Active ETF","BK7022":"家庭装饰品","BK4094":"服装零售","GAP":"Gap, Inc","BK4588":"碎股","GAP.AU":"GALE PACIFIC LIMITED","BK4585":"ETF&股票定投概念"},"translate_title":"瑞银表示，围绕即将到来的第二财季收益出现平衡的上行/下行偏差","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"RGLO":0.65,"GAP.AU":1,"GAP":1},"content_text":"Gap (GAP) is seen having a balanced upside/downside skew around its upcoming fiscal Q2 earnings, UBS said in a note emailed Wednesday.The company is set to report fiscal Q2 financial results on Aug. 27.UBS analysts expect Old Navy's fiscal Q2 comparable store sales to have a larger decline than the consensus estimate of a 2% decrease, due to its recovery from a Q1 seasonal category underperformance still ongoing and World Cup inventory selling worse than expected. This factor is the main downside risk, as it could raise investor concerns on the recovery pace of sales for H2, according to the note.On the other hand, the analysts see potential upside to fiscal 2026 gross margins if tariff changes implemented after July allows the company to release its financial reserve set aside for tariff-related costs.The analysts said they concur with the options market that the earnings report could be a \"high-volatility event.\"UBS' rating on the company's stock is buy with a price target of $40.Price: 20.10, Change: +0.02, Percent Change: +0.07","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":true,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"isVideo":false,"video":null,"symbols":[],"gpt_button":0,"need_auth":false,"need_login_tip":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"isLaohu8Offline":false,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.47.1","shortVersion":"4.47.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2660442415","isCrawlerRequest":true}