San Franciso, CA, United States (4E) – Gap Inc.’s said profit in its fiscal second quarter surged 25 percent due to higher sales at the retailer’s namesake and its Old Navy stores, which prompted the company to increase it earnings outlook for the full year.
In the quarter ended Aug. 3, net income jumped to $303mn, or 64 cents per share, compared with $243mn, or 49 cents per share, in the previous year, according to Gap’s statement released Thursday. The latest result is in line with analysts’ average estimates in a data compiled by Bloomberg News.
The San Francisco-based retailer raised its annual profit forecast to as much as $2.65 per share compared with the previous maximum of $2.60. Net sales for the quarter rose 8.2 percent to $3.87 billion.
For six straight quarters, the retailer has posted higher same-store sales, driven by an improving product line that included the newest fashion trends.
Chief Executive Officer Glenn Murphy has focused on improving product selections, attracting customers in with low prices, new athletic wear offerings and denim lines.
Improving traffic is an area that Gap is trying to improve. Despite the slightly slower traffic through the first two fiscal quarters, Mr. Murphy said the company can improve that metric, and that sales continue to grow through its online growth and improving units sold per transaction and conversion.