Gap offers upbeat 3Q profit outlook

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Associated Press

Posted on November 7, 2013 at 3:00 PM

Updated Thursday, Nov 7 at 4:00 PM

NEW YORK (AP) — Gap Inc. offered an upbeat profit outlook for the third quarter as the clothing chain announced a solid increase for a key sales yardstick in October that surpassed analysts' expectations.

The San Francisco-based chain, which owns the Gap, Banana Republic, Old Navy, Piperlime, Athleta and Intermix brands, saw a 4 percent increase in revenue at stores open a year. The results beat expectations for a 0.1 percent gain, according to Thomson Reuters.

The solid increase followed an unexpected drop in sales in September that threatened to stall momentum that Gap had enjoyed since early last year.

Shares of the company surged nearly 9 percent to $41.11 in after-hours trading Thursday after the results were announced. During regular trading, shares fell 26 cents to $37.76.

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