Gap Inc (NYSE:GPS) shares are rising in extended trading Thursday on the heels of the company’s first-quarter financial results.
- Q1 Revenue: $3.39 billion, versus estimates of $3.29 billion
- Q1 EPS: 41 cents, versus estimates of 14 cents
Comparable sales were up 3% year-over-year. Store sales were up 3%, while online sales jumped 5%. Merchandise margin increased 340 basis points compared to the prior year.
Gap said it ended the quarter with $1.7 billion in cash, equivalents and short-term investments.
“Gap Inc. delivered a strong quarter that exceeded expectations across key metrics. We gained market share for the 5 consecutive quarter with positive comparable sales at all brands, demonstrating improved relevance with our customers as we execute against our brand reinvigoration playbook,” said Richard Dickson, president and CEO of Gap.
“Our first quarter results are giving us confidence to raise both sales and operating income guidance for the full year.”
Gap expects second-quarter net sales to increase in the low-single-digit range on a year-over-year basis. Gap also raised its full-year guidance to reflect higher net sales and meaningfully higher operating income growth compared to the company’s prior expectations.
Gap now expects full-year revenue to be “up slightly” on a year-over-year basis versus prior expectations for revenue to be “roughly flat.” The company also expects operating income to grow in the mid-40% range versus prior expectations for low-to-mid teens growth.
Gap will discuss its quarterly results further on a conference call scheduled for 5 p.m. ET.
See Also: Ulta Beauty Reports Better-Than-Expected Q1 Results, Lowers FY24 Guidance
GPS Price Action: Gap shares were up 21.9% after hours at $27.33 at the time of publication, according to Benzinga Pro.
Photo: Mike Mozart from Flickr.
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