Shares of the Gap (GAP) are up 15% after the clothing retailer posted strong financial results for this year’s third quarter.
San Francisco-based Gap reported earnings per share (EPS) of $0.72 U.S., which was ahead of the consensus forecast that called for $0.58 U.S.
Revenue totaled $3.83 billion U.S., which topped Wall Street estimates of $3.81 billion U.S.
Gap, which also owns clothing brands Old Navy, Banana Republic, and Athleta, also raised its forward guidance, saying it now expects fiscal 2024 sales to be up 1.5% to 2%.
That’s an improvement from previous guidance that called for sales to be “up slightly” for the entire fiscal year.
The new guidance is also ahead of the 0.4% growth expected among analysts who track the company’s progress. This is the third time in 2024 that Gap has raised its guidance.
Management said the strong results and raised guidance come despite negative impacts from storms and hurricanes during the third quarter.
Unseasonably warm weather affected sales by about one percentage point during Q3.
Management added that preliminary data shows the current holiday shopping season is off to a strong start across the company’s various brands.
Gap’s overall sales have now grown for four consecutive quarters.
Prior to today (Nov. 22), Gap’s stock had risen 6% this year to trade at $22.04 U.S. a share.