Shares of The Gap fell nearly 6 percent Thursday after J.P. Morgan released a note downgrading the stock.
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Gap Inc. reported that its second-quarter net income rose to $297 million from $271 million a year ago, while total sales gained 8 percent to $4.1 billion from $3.8 billion a year ago.
Comparable sales rose 2 percent, with Old Navy ahead 5 percent, Gap brand down 5 percent and Banana Republic up 2 percent.
“We delivered our seventh consecutive quarter of positive comparable sales growth, led by the strength of Old Navy,” said Art Peck, president and chief executive officer, Gap Inc. “Our balanced growth strategy supports continued growth and improved profitability, and our investments are focused on leveraging the advantages of our scaled operating platform and accelerating the impact of our significant data assets.”
“The second quarter played out largely as expected, and we are reaffirming our guidance on the year,” said Teri List-Stoll, executive vice president and chief financial officer, Gap Inc. “We are pleased with the meaningful improvement at Banana Republic, and our work to increase productivity is funding investments in the business to drive differentiation and continued growth.”
