Gap Reports Earnings; Shares Lower in the After-Hours

Gap Inc. GPS reported earnings after the bell today that beat street estimates. The company reported that Q1 EPS came in at $0.45, this beat Street estimates by two pennies. The company said that sales increased 6% to $3.33 billion, compared with $3.13 billion last year Q1. Gap said that Gross margin grew to 42.1 percent compared, which was an increase of 11.3% over the prior year. The dividend was increased 18 percent from the prior quarter and about 14 million shares were repurchased for $296 million during the quarter, underscoring the company's commitment to return excess cash to shareholders. Guidance was raised as well; the company said they see FY 2010 coming in at $1.77-1.82 per share. Shares were lower in the after-hours trade by 1.06%, currently at $21.51.