Gap Inc (NYSE:GPS) exceeded sales expectations in the second quarter and upgraded forecasts, signalling that changes implemented by new CEO Richard Dickson are hitting the mark.
For the quarter ending August 3, net sales increased by 5% year-over-year to $3.7 billion, with comparable sales across its brands, including Old Navy and Athleta, rising by 3%.
The company also raised its full-year guidance for gross margin and operating income, driven by these strong results.
An administrative error led to the early release of earnings, initially planned for later in the day.
Despite the mistake, Gap's shares increased by 3%. Dickson, who took over a year ago, has focused on celebrity marketing and leadership changes, contributing to the company's positive performance.
While Old Navy outperformed expectations, Banana Republic's sales were flat, and Athleta's sales declined, though growth is anticipated for the remainder of the year.