Gap Stock Rises 16% In After-Hours On Beat-and-Raise Q3

Gap, which owns the namesake Gap brand, Old Navy, Banana Republic and Athleta, reported a sharp year-over-year (YoY) increase in earnings per share (EPS) from $0.58 to $0.72. The bottom-line results also exceeded the $0.58-per-share consensus estimate.

Revenue rose a modest 1.65% YoY from $3.77 billion to $3.83 billion, roughly in-line with estimates, with comparable sales rising 1%.

The company said its board approved a quarterly dividend of $0.15 per share.

Looking ahead, Gap raised its full-year net sales, gross margin and operating income growth guidance for the full year, citing its year-to-date performance. CEO Dickson said, "Holiday is off to a strong start and we remain focused on executing with excellence in the fourth quarter."

The company now expects 2024 net sales growth of 1.5%-2.0%, compared to prior expectations of a slight growth.

Following the quarterly results, Gap was among the top 10 trending tickers on Stocktwits.