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Gap Inc GPS shares are rising in extended trading Thursday on the heels of the company’s first-quarter financial results . Q1 Revenue: $3.39 billion, versus estimates of $3.
29 billion Q1 EPS: 41 cents, versus estimates of 14 cents Comparable sales were up 3% year-over-year. Store sales were up 3%, while online sales jumped 5%. Merchandise margin increased 340 basis points compared to the prior year.
Gap said it ended the quarter with $1.7 billion in cash, equivalents and short-term investments. “Gap Inc.
delivered a strong quarter that exceeded expectations across key metrics. We gained market share for the 5 th consecutive quarter with positive comparable sales at all brands, demonstrating improved relevance with our customers as we execute against our brand reinvigoration playbook,” said Richard Dickson , president and CEO of Gap. “Our first quarter results are giving us confidence to raise both sales and operating income guidance for the full year.
” Gap expects second-quarter net sales to increase in the low-single-digit range on a year-over-year basis. Gap also raised its full-year guidance to reflect higher net sales and meaningfully higher operating income growth compared to the company’s prior expectations. Gap now expects full-year revenue to be “up slightly” on a year-over-year basis versus prior expectations for revenue to be “roughly flat.
” The company also expects operating income to grow in the mid-40% range versus prior .