Gap Inc. reported higher than expected sales in the third quarter and increased its sales forecast for 2024.
The parent of Old Navy, Banana Republic, and Athleta brands, Gap posted third quarter net sales of $3.81 billion, a 2% increase compared to last year. Comparable sales were up 1% year-over-year.
The apparel company said it now anticipates fiscal 2024 sales to rise between 1.5% and 2%. Gap Inc. generated $14.9 billion in sales in fiscal year 2023.
"I'm proud that Gap Inc. delivered another successful quarter, growing net sales for the 4th consecutive quarter and gaining market share across all brands while meaningfully expanding operating margin," President and Chief Executive Officer Richard Dickson said in a statement.
"Consistent execution of our strategic priorities, including the rigor and repetition we're applying to our brand reinvigoration playbook, is making us a stronger company and demonstrates our continued progress in unlocking Gap Inc.'s full potential," he said.
Dickson also said the holiday is "off to a strong start and we remain focused on executing with excellence in the fourth quarter."
The company reported a net income of $274 million; and diluted earnings per share of $0.72.
