Gap October Sales Comparison Rises

SAN FRANCISCO (AP) — Gap Inc. said Thursday that sales in stores open at least one year rose 4 percent, a bigger increase than analysts predicted, helped by positive results at its Old Navy chain.

The company also offered third-quarter guidance above expectations.

Total sales for the four weeks ended Oct. 31 rose 5 percent to $1.14 billion from $1.08 billion last year.

Analysts surveyed by Thomson Reuters, on average, expected same-store sales to rise 1.6 percent

Sales at stores open at least a year are a key measure of retailer performance because they measure growth at existing stores rather than from newly opened ones.

Sales in stores open at least one year fell 6 percent at its namesake Gap stores, rose 5 percent at Banana Republic and jumped 14 percent at Old Navy.

The company said it expects third-quarter earnings between 42 cents to 44 cents, above analyst expectations of 38 cents per share.

Quarterly sales in stores open at least one year were flat, while total sales rose 1 percent to $3.59 billion. Analysts predicted sales of $3.53 billion.

Shares rose 59 cents, or 2.7 percent to $22.68 during premarket trading.