Gap Inc, which operates the Gap, Banana Republic and Old Navy chains, has raised its full-year earnings guidance after third-quarter profit surged 60% thanks to higher sales of new and revamped product lines.
The San Francisco-based business said the results underscore its continued progress on key business strategies.
“We’re very pleased with our strong third quarter financial performance, highlighted by how well customers have responded to our product,” said Glenn Murphy, chairman and CEO.
“We are ready to compete and win this holiday season as we drive to build upon our top line growth.”
Net income in the three months to October 27 jumped to $308 million or $0.63 per share, up from last year’s $193 million or $0.38 per share.
Net sales rose 8% to $3.86 billion, up from $3.59 billion a year earlier.
Comparable sales increased 6%, with gains across the company’s North American businesses. A rise of 7% was seen at Gap, Banana Republic was up 6%, and Old Navy surged 9%. But international comps fell 3%.
Given its progress in the year so far, the retailer raised its full-year earnings forecast to between $2.20 and $2.25 per share – which compares with $1.56 per share the year before.
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