Gap (GPS) Stock Gains in After-Hours Trading on June Sales

Gap (GPS) stock is trading higher after-hours after reporting same-stores sales growth in June.
By Rachel Graf ,

NEW YORK (TheStreet) -- Shares of Gap (GPS) - Get Report are up 4.02% to $22.50 in after-hours trading on Thursday after the retailer reported that same-store sales rose 2% in June.

By brand, same-store sales declined 1% at Gap and dropped 4% and Banana Republic but increased 5% at Old Navy last month.

Total sales at the San Francisco-based company rose 2% to $1.57 billion for the month, up from $1.54 billion a year ago.

"We are pleased to see better performance across the portfolio this month, partly driven by an improvement in June traffic trends, particularly at Old Navy," CFO Sabrina Simmons said in a statement.

Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C.

Gap's strengths such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and expanding profit margins are countered by weaknesses including feeble growth in the company's earnings per share, deteriorating net income and weak operating cash flow.

You can view the full analysis from the report here: GPS

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. 

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