Gap Jumps Postmarket After Old Navy Spinoff U-Turn

By Kim Khan

Investing.com – The retail rally continued in after-hours trading Thursday as investors bid up shares of Gap.

Gap (NYSE:) gained 6% postmarket after the company released upbeat guidance and said it no longer plans to spin off Old Navy into a separate company.

The company said it expects full-year 2019 same-store sales and net sales to be at the higher end of guidance.

will be “moderately above” previous guidance of $1.70 to $1.75 per share, thanks to “better than anticipated promotional levels over the holiday period, particularly at Old Navy,” the company said.

The National Retail Federation reported earlier today that holiday sales rose 4.1% in 2019 from the year-ago period.

“The plan to separate (Old Navy) was rooted in our commitment to value creation from our portfolio of iconic brands,” Robert Fisher, Gap interim president and CEO, said in a statement. “While the objectives of the separation remain relevant, our board of directors has concluded that the cost and complexity of splitting into two companies, combined with softer business performance, limited our ability to create appropriate value from separation.”

The company will appoint a new CEO to oversee all its brands.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.