Gap Inc (NYSE: GPS) shares ended the week on an upbeat note, after the company reported better-than-expected earnings for its second quarter and raised its FY17 guidance.
The San Francisco-based clothing giant reported Thursday diluted earnings per share of $0.68, a figure making allowances for a 10-cent benefit from insurance proceeds related to the fire that occurred on the company’s Fishkill distribution center campus in fiscal year 2016
According to Gap CEO Art Peck, “With a third consecutive quarter of comp sales growth, we are seeing our investments in product, customer experience, and brand equity begin to pay off. Based on the strength of the first half, we are pleased to increase our full year earnings guidance.”
Peck continued, “As we continue to focus on long-term growth, we are accelerating our strategies that put the customer at the center of everything we do – including a focus on product categories where we have clear differentiation, continued investment in our online and mobile offerings, and taking advantage of our operating scale to drive speed to market, responsiveness to customer demands and efficiency.”
Net sales for the second quarter of fiscal year 2017 were $3.80 billion compared with $3.85 billion for the second quarter of fiscal year 2016.
Moreover, Gap updated its reported diluted earnings per share guidance for fiscal year 2017 to be in the range of $2.12 to $2.20.
Just before Friday’s closing bell, shares in the GAP were up nearly eight cents to $22.76, within a 52-week trading range of $21.02 to $30.74.