Gap Inc.’s profit rose 25 percent compared with last year because shoppers spent more money at low-price Old Navy stores in the third quarter.
One year earlier, sales in Old Navy stores open at least a year slipped 18 percent compared to this year’s 10 percent rise. Sales in stores open at least a year is a key performance indicator for retailers.
Gap also announced that its board has authorized a buy back of $500 million in shares and that designer Stella McCartney will create a second line of children’s and baby clothing for GapKids and babyGap stores to be launched in March.
The retailer's stocks fell 44 cents, or two percent, to $21.86.
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