Gap (NYSE:GPS) soars with 5% sales surge

Gap (NYSE:GPS) has announced a positive close to its second quarter of fiscal 2024, showing significant financial gains.

The company reported a 5% increase in net sales, reaching $3.7 billion, propelled by robust performances from its Old Navy and Gap brands.

The retailer also noted a 3% rise in comparable sales compared to the same period last year.

Operating expenses remained stable at $1.3 billion, allowing the company to post an operating income of $293 million.

Notably, Gap’s operating margin saw a considerable improvement, standing at 7.9%—a 490 basis point increase from the previous year, indicating enhanced profitability.

Gap's net income for the quarter was reported at $206 million, with diluted earnings per share at $0.54.

Meanwhile, the company ended the quarter with a strong financial position, having $2.1 billion in cash, cash equivalents, and short-term investments, marking a 59% increase from the previous year.

Following the earnings releases, Gap's share price rose over 2% to $22.99.