Gap (GPS) posted surprisingly good numbers in January that saw Gap stock skyrocket Friday.
The apparel retailer said that same-store sales rose 1% in January which is better than the 1.1% decline called on by the consensus estimate. Gap issued fourth-quarter earnings-per-share guidance of 65 cents to 66 cents a share which exceeds analysts’ estimates of 59 cents.
The company reports revenue on February 27 which is expected to hit its 4.58 billion target. Janney Montgomery Scott analyst Adrienne Tennant raised her fair value estimate on Gap by $2 to $48 today. She said that the retailer is “managing the business well in tough times.”
This is the eighth-consecutive quarter of positive same-store-sales growth for Gap. GPS stock is up 6% Friday.