Specialty retailer Gap reported quarterly earnings and revenue that beat Wall Street’s expectations on Thursday but its full-year guidance missed analysts’ estimates.
After the earnings announcement, the retailer’s shares wavered in trading after the closing bell. Net income was $243 million, or 49 cents per share, an increase from $189 million, or 35 cents per share, in the year-ago quarter.
Revenue rose 6 percent to $3.58 billion from $3.39 billion a year ago.
Analysts had expected the company to report earnings excluding items of 48 cents a share on $3.53 billion in revenue, according to a consensus estimate from Thomson Reuters.
The company also raised its full-year guidance range to $1.95 to $2, below analysts’ consensus estimate of $2.08 a share.
Specialty retailer Aeropostale also released its quarterly earnings report on Thursday. The company’s revenue fell below expectations, but it met analysts’ forecast of breaking even on a per share basis.
Following the announcement, Aeropostale shares fell in trading after the closing bell.
"Customers responded well to our product offerings across our brands, driving a healthy increase in sales and earnings per share during the quarter," said Glenn Murphy, Gap’s chairman and CEO in a statement. "Our continued focus on product and store execution is helping to drive momentum, and we’re committed to sustaining solid performance for the remainder of the year."
The company, based in San Francisco, has struggled for years to reclaim its fashion status. The latest results offer more confidence that a comeback, started in the first quarter, is taking hold. The company has stepped up its marketing and this spring and summer pushed trendy clothing like brightly colored jeans and a designer collaboration with Diane von Furstenberg.
Revenue at stores opened at least a year was up 4 percent. By division, the metric rose 7 percent at Gap and Banana Republic and 3 percent at Old Navy. International same-store sales fell 5 percent in the quarter.
The figure on revenue at stores open at least a year — or same-store sales — is a key statistic in retailing because it excludes the effect of opening and closing stores in that period.