Gap 3Q profit, sales beat estimates

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

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.