Gap stock up 5% after retailer reports narrower Q2 loss, strong online sales
Gap Inc. stock rose 5% in the extended session Thursday after the retailer reported a narrower-than-expected second-quarter loss and sales beat Wall Street expectations. Gap said it lost $62 million, or 17 cents a share, in the quarter, contrasting with earnings of $168 million, or 44 cents a share, in the year-ago period. Sales fell to $3.28 billion from $4 billion a year ago. Analysts polled by FactSet had expected a loss of 45 cents a share on sales of $2.90 billion. Same-store sales rose 13%, led by a 95% online sales increase, Gap said. The retailer ended the quarter with $2.2 billion in cash and equivalents, compared with $1.1 billion at the beginning of the quarter. "Gap Inc. believes it is in a solid financial position to navigate through the ongoing pandemic and continue investing in its business," the company said in a statement. Gap shares ended the regular trading day up 2%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.