Gap Inc. Boosts Sales Forecast Amid Strong Earnings

Gap Inc. reported better-than-expected third-quarter earnings, leading to a significant increase in its annual sales forecast to a growth of between 1.5% and 2% for fiscal 2024. This upward revision follows the company's successful execution of a turnaround plan under CEO Richard Dickson, which included reducing discounts and introducing fresh, trendy styles. Despite being impacted by hurricanes and warm weather, sales rebounded significantly, and the holiday period has started strongly. Gap's shares soared nearly 16% in after-hours trading as investors reacted positively to the news. The company's Old Navy brand showed resilience by offering popular items at full prices, contributing to enhanced profit margins and market share gains. Gap's gross margin also saw a notable increase, reflecting the effectiveness of its strategic shifts.