(RTTNews) - Shares of Gap Inc. climbed around 15 percent in the extended trading on Thursday, as well as in the pre-market trading on the New York Stock Exchange on Friday, after the apparel retailer raised its fiscal 2024 outlook after reporting higher third-quarter earnings, above market estimates.
For fiscal 2024, the company now expects net sales to increase by 1.5 percent to 2.0 percent on a 52-week basis, compared to previous estimate of up slightly from last year's $14.9 billion.
Chief Executive Officer, Richard Dickson said, "Our performance year-to-date gives us the confidence to raise our full-year outlook for sales, gross margin and operating income growth."
For the third quarter, net income increased to $274 million or $0.72 per share from $218 million or $0.58 per share in the previous year's quarter.
Analysts surveyed by Thomson Reuters were expecting to report a profit of $0.58 per share for the third quarter. Analysts estimates typically exclude special items.
The net sales also increased 2 percent to $3.83 billion from $3.77 billion in the 2023 quarter.
Comparable sales were up 1% year-over-year.
Thursday, GAP had closed 3.46 cents or 6.89% higher at $22.04 on the New York Stock Exchange. In the extended trading, the stock gained 15.07%.
In the pre-market, GAP is now trading at $25.32, up 14.88%.
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