Gap Inc. has adjusted its fiscal outlook for fiscal 2024, raising its annual sales guidance despite facing challenges from hurricanes and unseasonably warm weather in the third quarter.
The company now expects sales growth of between 1.5% and 2%, surpassing analysts' expectations. Gap reported earnings per share of 72 cents, exceeding Wall Street's forecast, along with revenue of $3.83 billion. The company's net income for the quarter reached $274 million, a notable increase from the same period last year.
Despite the adverse weather conditions, Gap managed to post better-than-expected results, prompting optimism for the upcoming holiday season. The company's brands, including Old Navy, Gap, Banana Republic, and Athleta, each experienced varying sales performance. Old Navy saw a 1% increase in sales, while Gap and Banana Republic reported sales increases of 1% and 2% respectively. Athleta achieved a 4% sales increase.
Gap has been focused on revitalizing its brand identity and enhancing the consumer experience under CEO Richard Dickson's leadership. The company aims to improve its product offerings and competitive pricing. Gap's performance during the holiday shopping season will be closely monitored, particularly in light of recent weather-related disruptions. The company remains optimistic about its prospects and is focused on executing its strategic plans.