Yahoo Finance's Emily McCormick breaks down quarterly earnings for Costco and Gap.
SEANA SMITH: Costco is out with its most recent earnings report. Emily has the numbers for us. Emily.
EMILY MCCORMICK: Well, Seana, taking a look here at results from Costco, those coming in better than expected. Now Costco does usually report its sales results on a monthly basis. So those are pretty well known, heading into this report. So it's those bottom line results that were of most interest to investors.
And on that end, Costco did top expectations. Third quarter earnings were slightly higher than expected at $3.04. $3.02 had been the estimate. And even on the top line, Costco did eke out a beat at $52.6 billion, also higher than the $51.5 billion anticipated. US comparable sales, excluding gas and currency, were up 10.7%, whereas 9.6% had been the expectation among analysts on Wall Street.
Now, shifting gears to another retailer that just reported results, also want to highlight the move sharply lower that we're seeing in shares of Gap. Now, this company posted a major cut to its full year profit forecast. It now sees adjusted earnings per share coming in between $0.30 to $0.60. Previously, it saw between $1.85 to $2.05, so a major haircut there on that bottom line outlook.
Now, Gap CEO Sonia Syngal said, quote, "Our Q1 results and updated fiscal 2022 outlook primarily reflect industrywide headwinds, as well as challenges at Old Navy that are impacting our near-term performance." And when we look at these first quarter results, total comparable sales were down 14% for Gap. That was a bigger decline than expected.
And Old Navy comparable sales specifically were down by a worse than expected 22%. So, again, seeing these results really missing. Gap-- the Gap missing on a wide variety of major metrics here. Those shares are selling off in late trading, guys.
SEANA SMITH: They certainly are. Emily, the stock right now off 13% afterhours. Rachelle.