Gap, Inc. (NYSE:GAP) reported its third-quarter results after Thursday's closing bell. Here's a look at the key figures from the quarter.
The Details: Gap reported quarterly earnings of 72 cents per share, which beat the analyst consensus estimate of 57 cents. Quarterly revenue came in at $3.82 billion, which beat the consensus estimate of $3.81 billion and is an increase over sales of $3.76 billion from the same period last year.
- Net sales increased 2% versus last year with comparable sales up 1%.
- Operating margin of 9.3% improved 270 basis points versus last year.
- Market share gains across all brands in the quarter.
- Gross margin of 42.7% increased 140 basis points versus last year's gross margin.
- Merchandise margin increased 90 basis points versus last year primarily driven by improved inventory management.
- Ending inventory of $2.33 billion was down 2% compared to last year.
- Athleta net sales of $290 million were up 4% compared to last year.
- Old Navy net sales of $2.2 billion were up 1% compared to last year.
- Gap net sales of $899 million were up 1% compared to last year.
- Banana Republic net sales of $469 million were up 2% compared to last year.
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"I'm proud that Gap Inc. delivered another successful quarter, growing net sales for the fourth consecutive quarter and gaining market share across all brands while meaningfully expanding operating margin," said Gap CEO Richard Dickson.
"Consistent execution of our strategic priorities, including the rigor and repetition we're applying to our brand reinvigoration playbook, is making us a stronger company and demonstrates our continued progress in unlocking Gap Inc.'s full potential," Dickson added.
Outlook: Gap raised its full-year outlook for net sales, gross margin and operating income growth compared to prior expectations. The company now sees net sales up 1.5% to 2%, gross margin growth of 220 basis points and operating income margin of mid-to-high 60%.
GAP Price Action: According to Benzinga Pro, Gap shares are up 12.98% after-hours at $24.90 after gaining 6.89% during Thursday's regular trading session.
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Image: Courtesy of Gap, Inc.
