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Investing.com – Gap stock (NYSE:GPS) jumped 3% Friday as the clothing retailer revised its guidance one more time after reporting its best second-quarter sales.
The company has predicted its 2021 sales to rise by about 30% which makes it $17.94 billion for the year. This compares to “down low-single digits” forecast it first gave in March. That estimate was revised in May.
Comparable sales were up 3% year-over-year.
On many parameters, the company did comparisons with 2019 owing to that being a pre-pandemic year.
Online sales grew 65% compared to the second quarter of 2019 and represented 33% of the total business. Store sales fell 11% from two years ago due to divestitures and strategic closures.
The Athleta brand recoded the highest jump in sales on a percentage basis. Net sales were up 35% versus 2019 as customers chose for comfort wear even while working. Old Navy sales rose, too, as the company launched customer loyalty drives, leveraged its positioning among kids and parents in the back-to-school season and expanded its offering for women.
Net sales rose 29% from 2020 quarter and 5% from 2019, to $4.2 billion. Profit per share of 70 cents beat the estimated 45 cents.
