High street fashion retailer Gap has surprised investors with better than expected second quarter results, providing hope its turnaround efforts are working.
In the three months to July 29, same store sales rose by one per cent, above expectations they would remain flat on the previous quarter and marking the third consecutive period of growth.
Shares in the US retailer jumped as much as six per cent following the results, encouraged by Gap raising its expectations for the full year to between $2.01 and $2.10 per share, above previous projections of $1.95 and $2.05 a share.
The retailer’s shares have already grown 1.1 per cent this year, representing a stark turnaround from two years prior when shares dived 50 per cent.
This has largely been driven by the company’s chief executive Art Peck who joined in 2015.
Peck pushed for the revival of Gap’s Old Navy brand, which saw a five per cent rise in same-store sales.
“With a third consecutive quarter of comp sales growth, we are seeing our investments in product, customer experience, and brand equity begin to pay off,” Peck said.