GAP retail store facade with logo sign on a sunny day, San Francisco, California, June 7, 2024.
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Gap beat quarterly revenue and profit estimates and raised its full-year profit margin outlook, the clothing retailer said in results released earlier than expected on Thursday.
The company's shares rose nearly 3% after being halted for much of Thursday morning. Bloomberg reported that a presentation with the results briefly appeared on Gap's website in the morning, before it was apparently removed.
Trading in Gap stock was halted shortly before 10 a.m. ET. The company released its quarterly results at 11:12 a.m. ET, hours earlier than it was originally scheduled to release results after the market closed on Thursday.
Gap did not immediately respond to a request for comment.
Here's what the company reported for the second fiscal quarter, compared with what Wall Street expected, according to analysts surveyed by LSEG:
- Earnings per share: 54 cents versus the expected 40 cents
- Revenue: $3.72 billion versus the expected $3.63 billion
The clothing retailer's sales rose 5% to $3.7 billion in the second quarter. Comparable sales rose 3%.
Gap posted net income of $206 million, or 54 cents per share, for the period ended Aug. 3. That compares with $117 million, or 32 cents per share, in the year-ago period.
The retailer also confirmed its full-year sales forecast, which is slightly higher than a year earlier. Gap raised its gross margin forecast to an expansion of around 200 basis points, compared with a potential improvement of at least 150 basis points. It also raised its operating income forecast to growth of about 50%, compared with percentage growth of around 45%.
The strongest comparable sales were at the Old Navy brand, which rose 5%. Gap's namesake brand posted comparable sales growth of 3%.
Comparable sales were flat at Banana Republic, while they fell 4% at Athleta.
Gap's gains come as Chief Executive Richard Dickson, who took the helm last year, tries to lead a sales recovery at the long-time retailer.
Investors are closely watching a busy week of retail earnings for signs of whether consumer spending is slowing in the second half of the year. General dollar Shares plunged Thursday morning after the discount retailer cut its sales and earnings outlook, citing in part “financially constrained” lower-income consumers.
Both American Eagle Suppliers and The best buy The clothing retailer reported progress in increasing its profits on Thursday when it announced its results. However, it gave a subdued outlook for the second half of the year as the electronics giant continues to work to return to sales growth.
Lululemon and Ulta Beauty Results will also be released after the bell on Thursday.
