Shares of Gap Inc. increased more than 18% during Thursday’s extended session after the retailer announced a holiday-quarter profit that was far higher than Wall Street’s forecasts. The store also talked about a “reinvigoration” of its brands and provided guidance for higher sales this year.
The profit per share for Gap (GAP) was 54 cents, while the FactSet estimate was 36 cents.
Despite a calendar adjustment that resulted in 2024 having one fewer week than the previous year, the company’s fourth-quarter net sales of $4.1 billion were down 3% from the same period last year.
For the entire year 2024, sales reached $15.1 billion, a 1% increase over the previous year. Additionally, Gap projected a 1% to 2% increase in sales in 2025, which would be in line with Wall Street’s forecast for a revenue flat year.
