Gap Inc. (NYSE: GPS) is out with its second quarter earnings report. The apparel retailer reported earnings of $243 million or $0.49 per share as sales increased by 6 percent to $3.58 billion. Estimates from Thomson Reuters were $0.48 EPS and $3.53 billion in sales.
The company’s second quarter comparable sales increased by 4 percent and the earnings gains were 29% on net income and 40% in earnings per share. Guidance is being raised as well: “Given second quarter performance, the company has raised its estimate for fiscal year 2012 diluted earnings per share to be in the range of $1.95 to $2.00, compared with $1.56 in fiscal year 2011.” We would note that the Thomson Reuters figure projected for the year is $2.08 EPS.
Gap put its earnings beat based upon customers responding well to its product offerings in its multiple brands and the guidance is based on a focus of product and store execution driving positive momentum.
Gap shares closed down 4.6% at $33.01 on Thursday but shares are up over 3% more and close to $34.00 in the after-hours.
JON C. OGG