Gap Inc (NYSE:GPS) shares popped some 15% higher overnight after it released better-than-expected financials after Thursday’s closing bell.
Chief executive Richard Dickson said that Gap’s “brand reinvigoration playbook” was helping to make the company stronger and driving progress to unlock the brand’s “full potential”.
The jeans-and-hoodies retailer last night announced third-quarter fiscal 2024 results, with earnings per share of $0.72 surpassing analyst expectations of $0.58.
Revenue for the period was $3.80 billion, slightly below the $3.81 billion consensus estimate.
GAP highlighted 7% growth in online sales, which constituted 40% of total net sales, while store sales declined by 2%.
Operating income stood at $355 million, reflecting an operating margin of 9.30%, a 270-basis-point improvement compared to the prior year. The company also reported net income of $274 million for the quarter.
Ahead of Friday’s open in New York, the stock price was up $3.36 or 15.25% at $25.40.