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A Look at Gap’s Year-to-Date Stock Market Returns

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Strong 1Q17 results fail to stop the fall in Gap stock

As we’ve already seen, Gap (GPS) delivered top-line and bottom-line beats when it reported its first-quarter results on May 18, 2017. The company’s share price, however, didn’t rise. Rather, the stock fell around 4.1% over the next two trading days.

Gap has fallen more than 13.0% over the last month and is currently at a YTD (year-to-date) loss of around 1.0%.

Investors who want exposure to Gap through ETFs can consider the SPDR S&P Retail ETF (XRT), which invests 0.90% of its holdings in the company.

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The performance of competitors

Like Gap, most apparel and accessories sector peers are in the red in the current year. All of the following, including major apparel stores, sportswear manufacturers, and specialty athletic retailers, have failed to please investors:

  • VF Corp. (VFC): -1.0%
  • Ralph Lauren (RL): -25.0%
  • Under Armour (UAA): -34.0%
  • Lululemon Athletica (LULU): -24.0%
  • Foot Locker (FL): -21.0%
  • Dick’s Sporting Goods (DKS): -22.0%

The only exceptions are Coach (COH), which rose 30.0%, and PVH (PVH), which rose 13.0%.

The seven-company S&P 500 Apparel and Accessories Index has fallen ~3.0% year-to-date. It has underperformed the S&P 500 Index (SPX), which has risen ~7.0% to date.

Year-to-date total returns

Although Gap has negative returns in the stock market, its total shareholder returns are marginally positive at 0.70%. The reason behind it is the company’s high dividend yield. In the next part, we’ll look at the company’s dividend and share buyback policy.

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