NEW YORK (TheStreet) -- Shares of The Gap Inc. (GPS) are higher by 5.42% to $42.38 in early morning trading on Friday, after the company reported a 5% increase in July same store sales to $1.17 billion, from $1.12 billion for July of 2013.
The specialty apparel retailer said net sales were up 3% for the 2014 second quarter to $3.98 billion, from $3.87 billion for the year ago quarter.
Gap will release its second quarter earnings after the close on August 21.
The company guided for diluted earnings per share in the range of 73 cents to 74 cents, compared to its previous guidance of 64 cents.
Gap is one of the leaders in the retail sector’s overall sales growth for July, the Wall Street Journal reported.
The Thomson Reuters sales index showed a 4.4% rise in sales for July, compared to its estimate of $4.2%, the Journal added.
Separately, 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."
You can view the full analysis from the report here: GPS Ratings Report