Shares of Gap Inc. rose Friday following the clothing company releasing their fourth-quarter results and a sunny 2011 forecast.
Gap exceeded Wall Street expectation with a 45 percent profit rise driven by their lower-price Old Navy stores. The company, which also owns Banana Republic, posted quarterly earnings of 51 cents per share on sales of $4.24 billion.
This narrowly surpassed analyst expectations of 50 cents per share on revenue of $4.23 billion.
Afternoon trading on Friday saw Gap's stock tack on $1.17, or 5.7 percent, to trade at $21.56. Yesterday the company’s announcement that they would remodel a quarter of all Old Navy stores and expand the Gap and Banana Republic market share in Europe and China prompted investors to take another look at the San Francisco based company.
Predicted 2011 earnings of as much as $1.75 per share also contributed to the rise. Analysts predict slightly lower number at $1.69 per share for the year.
About EQUITIES:
Since 1951, EQUITIES Magazine has been a leading media company providing business editorial content designed to serve the needs of business leaders, professionals, institutional investors and retail investors. We are focused on business and the business of making money, not on lifestyle subjects. We publish original reporting in print and on our website, as well as select content at www.nasdaq.com. For 28 years we have hosted our own branded investor conferences that connect public company CEO’s with our loyal readers in the investment community.
Sign up for a free one-year subscription
