Fashion retailer Gap Inc. (GPS) Thursday said its sales for April increased 5 percent, on a 7 percent growth in same-store sales, led largely by its namesake and Old Navy stores.
The company also forecast first-quarter earnings to come in ahead of Wall Street's current expectations. Shares of the apparel chain rose 7 percent in after-hours trade.
San Francisco, California-based Gap expects expects first-quarter earnings of $0.68 to $0.69 per share, compared to $0.47 per share last year. Analysts polled by Thomson Reuters currently expect earnings of $0.56 per share for the first quarter. Analysts' estimates typically exclude special items.
The company said first-quarter 2013 earnings per share includes a benefit of about $0.04 related to the favorable resolution of tax matters.
Gap said its sales for the first quarter grew 7 percent to $3.73 billion from $3.49 billion last year. Analysts estimated sales of $3.67 billion for the quarter.
Same-store sales, or sales from stores open for at least a year, grew 2 percent in the quarter.
Meanwhile, sales for April increased 5 percent to $1.21 billion from $1.15 billion a year ago. Same-store sales for April, for the four-week period ended May 5, rose 7 percent.
Chief Executive Glenn Murphy said, "We are pleased with our sales performance this month, led by our largest brands, Gap and Old Navy."
Comparable stores sales rose 8 percent at Gap, one percent at Banana Republic and 9 percent at Old Navy for April.
Gap's stock closed Thursday at $38.81, up $0.05 or 0.13%, on the NYSE. The stock further gained $2.67 or 6.88% in after hours.
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