Gap shares popped in extended trading after the retailer behind Old Navy, Banana Republic and its eponymous brand, revealed a better-than-expected profit outlook.
Shares in Gap climbed 3 per cent, after the retailer narrowed the range of its adjusted full-year earnings to $2.41 to $2.42 a share, from $2.38 to $2.42 a share. That beat Wall Street’s expectations for $2.37 a share.
The news came alongside comparable sales figures for the fourth quarter and January. Here’s a breakdown for the last quarter:
Meanwhile, here’s how same-store sales shaped up in January.
The retailer continues to face increased pressure from fast fashion brands like H&M and Zara.
Old Navy, the brand which Stefan Larsson helped revive, has seen sales slow as it faces tougher comparisons. An unseasonably warm winter also weighed on its sales. While the decline in Gap sales appears to be slowing, analysts have warned a turnaround at the retailer could be halted if Old Navy, its largest division, starts to falter.