- By Region
Gap reported growth in net income and sales that narrowly beat market expectations as its newest clothes click with consumers following a long period of criticism for flat fashions.
The San Francisco-based retailer reported sales up 6 per cent to $3.6bn and net income that rose 29 per cent to $243m, or 49 cents per share. It also raised its full-year profit forecast.
Following positive reviews for some of its summer outfits from style experts, the sharp growth in profits also confirmed Gap’s ability to keep a tight lid on costs and its inventory.
“Customers responded well to our product offerings across our brands,” said Glenn Murphy, chief executive.
In North America, sales rose at stores open at least a year under all three of its brands: Gap, Banana Republic and Old Navy.
However, in its international business – where it continues to open new stores – like-for-like sales fell 5 per cent from a year ago.
Gap shares rose 1.5 per cent to $34.85 in after-hours trading.