Gap jumps as profit beats estimates and Old Navy gets a new CEO
+12.94% to $23.48 from $20.79
What moved GAP
- Gap Inc. reported second-quarter adjusted earnings of 52 cents per share, topping the 48-cent analyst estimate, though sales slipped to $3.65 billion from $3.73 billion a year earlier.
- Gap-brand comparable sales rose 10% year over year, while Old Navy’s net revenue fell 4% to $2.1 billion, prompting a leadership change at the division.
- Horacio Barbeito is stepping down as Old Navy’s president and CEO effective November 2, to be replaced by Michael Francis, who had been serving as Gap Inc.’s chief customer officer.
- The company raised its full-year adjusted EPS outlook to $2.35-$2.45 from $2.30-$2.40, while narrowing its net sales growth forecast to 1%-1.5% due to Old Navy’s lag.
- Shares jumped as much as 14% following the announcements.
Sources: Yahoo Finance · WWD · CNBC