Diane Alter – Fourth Estate Cooperative Reporter
New York, N.Y., United States (4E) – After years of being accused of selling boring, understated, muted clothes, The Gap has got its groove on.
The company reported healthy earnings late last week after the close. The company reported earnings of 47 cents a share, a penny ahead of estimates, and 17 percent better than the same period a year ago. Shares rose after the company gave an upbeat future guidance.
The better than expected first quarter report underscores that the ambitious turnaround the company has been staging appears to be working.
The company’s spring merchandise is selling well, and its revamped website is attracting new and brisk traffic.
The third biggest clothing retailer in the world after Zara owner Inditex and H&M owner Hennes & Maurtiz AB, the Gap brands include Banana Republic, Piperlime, Athleta and Old Navy. All of its stores are enjoying an uptick in the recovering economy and renewed interest in its items.
The first Gap store was opened in 1968 by Doris and Don Fisher spurred on by Don’s inability to find a pair of jeans that fit.
The Gap has stores in more than 80 locations. It opened its first store in China in 2011.
In Monday morning pre-trading, shares of the Gap, were unchanged at $25.71