Gap Inc. Q1 Profit Jumps 40%

San Francisco–Gap Inc. has raised its earnings guidance for the year ahead after posting a 40% jump in first quarter profit thanks to top line growth across all its brands.

“We’re in a strong position to execute on our international and online strategic investments as we continue to build upon the momentum in North America,” chairman and ceo Glenn Murphy said.

The company reported net income for the first quarter rose to $302 million or $0.45 per share, up from $215 million or $0.31 per share in the same period last year. Sales in the three months to May 1 climbed 6% to $3.33 billion, up from $3.13 billion last time, with same-store sales up 4%.

Comparable store sales rose at its three main divisions, with a rise of 2% reported at Gap North America, gains of 5% at Banana Republic North America, and a 7% sales surge at its largest unit, Old Navy North America.

Looking ahead, the company raised its guidance for the fiscal year to $1.77 to $1.82 per share, up from previous forecasts of $1.70 to $1.75.

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