Clothing retailer Gap Inc (NYSE:GPS) rallied as it published much stronger than expected January numbers and was upbeat going into the current year.
“Against a challenging retail backdrop, we’re pleased to report growth in our top-line and comp sales during the critical holiday quarter,” said Art Peck, chief executive.
Like-for-like sales in January rose by 1% against an 8% decline a year ago, with gains at the Gap and Old Navy chains offsetting a drop at Banana Republic.
Gap Inc also upped its guidance for the year to January to adjusted earnings of US$2.01 to 2.02.
Net sales for the four-weeks ended Jan 28, 2017 came in at $828 million, up 2%, while fourth quarter sales rose by 1% to US$4.43bn.
Fourth quarter earnings will be released on 23 February.
Shares rose 1% to US$23.35.