Gap same-store sales tops estimates, ups profit forecast; shares jump

Clothing retailer Gap Inc <GPS.N> reported better-than-expected same-store sales for the second quarter, helped by strong demand for Old Navy products, fewer discounts, and the company's efforts to better manage inventory.

The company also said its quarterly net income more than doubled and raised its full-year earnings forecast, sending its shares up about 12 percent in trading after the bell.

Gap's same-store sales rose 1 percent in the three months ended July 29, while analysts were expecting sales to be flat year-over-year, according to research firm Consensus Metrix.

Net income rose to $271 million, or 68 cents per share, from $125 million, or 31 cents per share.

(Reporting by Gayathree Ganesan in Bengaluru; Editing by Savio D'Souza)