Shares of Gap (GPS) - Get Gap, Inc. (GPS) Report wavered after the apparel-and-accessories retailer swung to a surprise fiscal-first-quarter profit, nearly doubled its quarterly revenue and raised its full-year guidance.
For the quarter ended May 1, Gap reported earnings of $166 million, or 43 cents a share, against a loss of $932 million, or $2.51 a share, in the year-earlier quarter.
The latest adjusted earnings were 48 cents a share.
Revenue came in at $3.99 billion, up from $2.1 billion a year ago.
A survey of analysts by FactSet produced consensus estimates of a loss of 3 cents a share, or an adjusted loss of 5 cents a share, on revenue of $3.44 billion.
At last check shares of the San Francisco company were off 0.4% at $35. They closed regular Thursday trading up 3.3% at $35.15. The shares touched a 52-week high $37.63 on May 18.
Comparable-store sales rose 35% at Old Navy Global, 29% at Gap Global and 27% at Athleta from the year-earlier quarter. Same-store sales at Banana Republic dropped 4% year-on-year.
Compared with the 2019 quarter, comparable sales rose 25% at Old Navy Global and jumped 46% at Athleta. Same-store sales compared with 2019 fell 1% at Gap Global and were off 22% at Banana Republic.
"Gap Inc. delivered sales growth of 8% over 2019 pre-COVID levels, with particular strength at Old Navy and Athleta, a healthy and growing Gap business in North America, and market share gains that outpaced the industry,” Chief Executive Sonia Syngal said in a statement.
"As stores traffic came back, we sustained our digital dominance with 82% online growth versus 2019.
"And while Active and Fleece continue to soar, we saw a resurgence in summer fashion with dresses rebounding, showing that customers are emerging from the crisis wanting to express their style without sacrificing the comfort and digital convenience they’ve become accustomed to."
Gap raised its guidance for full-year GAAP diluted earnings per share to a range of $1.55 to $1.70. FactSet's survey was calling for $1.43 a share.
The company now expects net sales to increase between the low to mid 20% range for fiscal 2022, compared with its earlier guidance of mid-to-high teens percent.