Gap Inc (NYSE:GPS) shares jumped more than 16 percent in the mid-day trading session on Friday after the company said its September sales were slightly better than its expectations.
The San Francisco-based retailer reported that same-store sales jumped 4 percent at Old Navy in September, while analysts were expecting a rise of less than 1 percent.
The company’s Chief Financial Officer Sabrina Simmons said ‘’we are pleased to see a strong customer response to Old Navy’s product assortment, which continues to drive positive momentum at our largest brand.’’
However, Gap’s overall same-store sales slipped 3 percent in the last month, as compared to a decline of 1 percent last year. Analysts surveyed by Thomson Reuters were looking for a decline of 2.9 percent.
Same-store sales plummeted 10 percent at the Gap Global, and 9 percent at Banana Republic in September.
Net sales for September fell 2 percent to $1.43 billion, as compared to $1.46 billion in the same month last year.
Gap shares have plummeted about 8 percent over the past year. The 52-week range of the stock is $17.00-$30.49. The company’s market cap is $10.40 billion and P/E ratio is 14.59.