Clothing retailer Gap reported better-than-expected same-store sales for the second quarter, helped by strong demand for Old Navy products, fewer discounts, and the company’s efforts to better manage inventory.
Shares rallied more than 6 percent in extended-hours trading Thursday.
The company also said its quarterly net income more than doubled and raised its full-year earnings forecast, sending its shares up as much as 12 percent in trading after the bell.
Gap’s same-store sales rose 1 percent in the three months ended July 29, while analysts were expecting sales to be flat year-over-year, according to research firm Consensus Metrix.
Net income rose to $271 million, or 68 cents per share, from $125 million, or 31 cents per share.