Gap (GAP) Climbs 8.2% on Higher Growth Outlook

We recently published 10 Big Names Crushing the Market. The Gap Inc. (NYSE:GAP) is one of the best-performing stocks on Friday.

Gap saw its share prices jump by 8.24 percent on Friday to end at $24.96 apiece as investor sentiment was fueled by a higher growth outlook guidance in full-year 2025, despite posting mixed earnings results in the third quarter.

In an updated report, The Gap Inc. (NYSE:GAP) said it now expects net sales to grow by 1.7 to 2 percent, higher than its previous outlook of 1 to 2 percent.

Operating margin is also targeted to grow by 7.2 percent, versus the 6.7 to 7 percent guidance previously.

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In the third quarter of the year, The Gap Inc. (NYSE:GAP) reported a 3 percent increase in net sales at $3.9 billion versus $3.8 billion in the same period last year, on the back of 3 percent higher store sales, and 2 percent growth in online sales. Comparable sales were up by 5 percent year-on-year.

Net income, on the other hand, dropped by 13.9 percent to $236 million from $274 million year-on-year.

“We are proud to report that Gap Inc.’s third quarter results exceeded our net sales and margin expectations and delivered the seventh consecutive quarter of positive comparable sales,” said The Gap Inc. (NYSE:GAP) President and CEO Richard Dickson.

“Our strategy is working and our brands are gaining momentum with our three largest brands—Old Navy, Gap, and Banana Republic—each posting strong comparable sales. The strength of our third quarter and quarter-to-date performance positions us well for the holiday selling season and gives us the confidence to increase our full year net sales outlook to the high end of our prior guidance range and raise our full year operating margin outlook. We are focused on executing with excellence and finishing the year strong,” he noted.

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Disclosure: None. This article is originally published at Insider Monkey.