The retailer reported total sales of $1.17 billion for the month of July, a 5% increase from July 2013. Same-store sales increased 2% in the month, above the 0.1% analysts' expected according to Thomson Reuters. The higher same-store sales were driven by the Banana Republic which performed well in the month.
Gap also said that it expects earnings of 68 cents to 69 cents a share for the second quarter, above analysts' estimates of 66 cents a share.
Must read: Warren Buffett's 25 Favorite Stocks
TheStreet Ratings team rates GAP INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate GAP INC (GPS) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."