Gap Inc (NYSE:GPS) reported stronger-than-expected results for its third quarter on Thursday. The company also reaffirmed FY19 guidance.
The San Francisco-based clothing store chain also revealed net sales were $4.0 billion, a decrease of 2% compared with last year. Gross profit was $1.56 billion, a decrease of 4% compared with last year.
Diluted earnings per share were $0.37 compared with $0.69 last year. Adjusted diluted earnings per share were $0.53 for the third quarter of fiscal year 2019.
During the quarter, Gap repurchased 2.9 million shares for $50 million and ended the third quarter of fiscal year 2019 with 373 million shares outstanding.
The company paid a dividend of $0.2425 per share during the third quarter of fiscal year 2019. In addition, on November 14, the company announced that its Board of Directors authorized a fourth-quarter dividend of $0.2425 per share.
The company ended the third quarter of fiscal year 2019 with $1.1 billion in cash, cash equivalents, and short-term investments. Year-to-date free cash flow, defined as net cash from operating activities less purchases of property and equipment, was $5 million compared with $57 million last year.
Said CEO Robert Fisher, "We are not pleased with the third quarter results and are focused on aggressively addressing the operational issues that are hindering the performance of our brands.
"We continue to make progress against our separation plans, which will provide improved focus and a further catalyst for transformation."
Shares in Gap advanced 17 cents, or 1.1%, to $16.39
