Shares of global retailer Gap Inc. rose some 4 percent in after-hours trading following the company’s earnings release for the first quarter of fiscal 2017. It was largely a beat.
In Q1 2017, Gap Inc. reported diluted earnings per share of $0.36, well above analyst consensus estimates of $0.29, and up 8 percent from EPS posted in Q1 2016. For the full year, Gap Inc. reaffirmed its eps guidance in the range of $1.95 to $2.05.
Across brands, Gap Inc. reported comparable sales up 2 percent in Q1 2017, a significant improvement over the 5 percent loss the company posted in the same period last year.
“We are pleased with our positive comp and earnings growth this quarter,” said Art Peck, Gap Inc. president and CEO. “We’ve made substantial improvements in product quality and fit, and our increasing responsive capabilities are enabling us to better react to trends and demand.”
By brand, Gap Global saw comp sales down 4 percent, while Old Navy global grew 8 percent—a significant improvement for the latter, which saw a 6 percent loss last year. Banana Republic saw a loss of 4 percent in comp sales, which is still a significant improvement after being down 11 percent in the first quarter of 2016.
“While the retail environment continues to be challenging, we are focused on delivering the best possible product and customer experience, and our ability to leverage a portfolio of iconic brands and operating scale uniquely positions the company for long-term growth,” Peck said.
Net sales for the quarter hit $3.44 billion, flat from the same period last year and above analyst consensus estimates of $3.39 billion. Gap Inc. indicated that the translation of foreign currencies into U.S. dollars negatively impacted the company’s net sales by about $11 million in Q1 2017.