Gap Shares Rise After Announcing Buyback, Dividend Increase

Gap Inc. shares rose 4.1% in after-hours trading on Thursday after the clothing retailer announced a new $1 billion share-buyback program. Gap also said it's raising its annual dividend to 92 cents a share from 88 cents. The company said earnings rose to $319 million, or 75 cents a share, from $307 million, or 68 cents, a year earlier. The most recent quarter's results topped the FactSet consensus estimate by 1 cent a share. Sales rose 3% to $4.71 billion from $4.58 billion as it previously reported. Gap forecast full-year profit of $2.75 to $2.80 a share. That includes a 16-cent negative impact from foreign currency exchange and a 13-cent hit from West Coast port slowdown that led to delayed merchandise receipt. Analysts surveyed by FactSet were looking for profit of $3.02 a share.