Gap Inc. GAP shares soared by 14.02% on Friday during pre-market hours, according to Benzinga Pro, following the release of its third-quarter earnings report after Thursday’s market close. The retailer exceeded Wall Street expectations, leading to a positive revision in its annual sales outlook.
The company reported earnings of 72 cents per share, surpassing the analyst consensus of 57 cents. Revenue for the quarter reached $3.82 billion, slightly above the anticipated $3.81 billion and marking an increase from last year’s $3.76 billion for the same period.
Net sales rose by 2% compared to the previous year, with comparable sales increasing by 1%. The operating margin improved to 9.3%, up 270 basis points from the prior year.
Looking ahead, Gap has adjusted its full-year projections, now expecting net sales to rise between 1.5% and 2%. The company also anticipates a gross margin growth of 220 basis points and an operating income margin in the mid-to-high 60% range. This optimistic outlook has contributed to the stock’s recent rally.
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