Gap Lifts FY21 Outlook; Shares Up 6%

Shares of Gap Inc. (GPS) jumped over 6% in extended session on Thursday after the apparel retailer lifted its full year 2021 outlook.

The company now sees full-year earnings of $2.10 to $2.25 per share, compared to prior estimate of $1.60 to $1.75 per share. Analysts polled by Thomson Reuters currently estimate earnings of $1.78 per share for the year.

For the second quarter, Gap reported profit of $258 million or $0.67 per share, compared to a loss of $62 million or $0.17 per share in the same period last year. Adjusted earnings for the quarter was $272 million or $0.70 per share for the period. Analysts projected earnings of $0.43 per share for the quarter.

Revenues for the quarter grew 29% $4.21 billion from $3.28 billion in the same period last year. Analysts had a consensus revenue estimate of $4.12 billion for the quarter. Comparable sales were up 3% year-over-year, and up 12% versus 2019.

GAP closed Thursday's trading at $26.35, down $1.13 or 4.11%, on the NYSE. The stock, however, gained $1.65 or 6.26% in the after-hours trade.

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