Gap 3Q profit, sales beat estimates

Retail Reuters

People carrying umbrellas pass by a Gap store on 5th avenue in midtown Manhattan in New York June 16, 2015. REUTERS/Brendan McDermid (Copyright Reuters 2017)

Clothing retailer Gap Inc (GPS) on Thursday reported quarterly results that beat estimates, as its turnaround efforts to revive its Gap and Old Navy brand paid off.

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Shares of the company rose 5 percent to $28.87 after market.

The company also raised its full-year adjusted profit forecast to $2.08 to $2.12 per share from its previous estimate of $2.02 to $2.10 per share.

Same-store sales at Old Navy, Gap's biggest revenue contributor, rose 4 percent in the third quarter ended Oct. 28, beating analysts' average estimate of a rise of 2.5 percent, according to Thomson Reuters I/B/E/S.

The company reported positive same-store sales of its namesake brand for the first time in a few quarters.

Overall same-store sales rose 3 percent in the reported quarter, while analysts were expecting it to rise 1.01 percent.

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Excluding items, the company earned 58 cents per share, beating analysts' average estimate of 54 cents.

The company's net sales rose about 1 percent to $3.84 billion. Analysts had expected sales of $3.76 billion.

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