by Christopher Freeburn | August 17, 2012 10:40 am
Gap (NYSE:GPS) announced on Friday that it earned $243 million during the second quarter, up 29% from $189 million in the same period last year.
The apparel retailer said its revenue increased to $3.58 billion, up 6% from 2011. That narrowly beat Wall Street, which expected revenue of $3.57 billion, the Associated Press.
EPS for the quarter was 49 cents, up from 35 cents last year, and topping the 48 cents analysts had predicted.
The company raised its earnings forecast for the year. It now forecasts 2012 profits of between $1.95 and $2 a share, up from earlier guidance of between $1.72 and $1.83 a share.
Still, the new estimate fell short of the $2.09 a share that Wall Street had anticipated.
Shares of Gap rose more than 4%.
Gap said that same-store sales at its Gap and Banana Republic outlets jumped 7% over last year, while Old Navy stores showed a 3% increase.
Sales at its overseas stores dropped by 5%, however. The company has been adding new stores in China. It has been shutting down under-performing U.S. stores.
On Wednesday, Abercrombie & Fitch (NYSE:ANF) shares rose after the teen clothing brand reported quarterly earnings that topped its already-lowered estimates.
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