Shares of Gap Inc. skyrocketed more than 12% in the aftermarket Thursday after the retailer took Wall Street by surprise, narrowing its GAAP loss and earning a penny a share on an adjusted basis in its first quarter.
Sales fell 6% to $3.28 billion, in line with company’s expectations for a mid-single-digit decline in the quarter. Same-store sales were down 3%.
Analysts polled by FactSet expected Gap to report a loss of 16 cents a share on sales of $3.28 billion.
Gap continues to take “necessary actions” to turn around its business, interim CEO Bob Martin said in a statement.
“While the macro and consumer environment remain uncertain, (first quarter)
underscores our ability to deliver improvements to the business including share gains at Old Navy and Gap brand,” he said.