Gap Second Quarter Results Top Estimates

Global retailer Gap said late Thursday fiscal second-quarter adjusted earnings and net sales beat analyst estimates after comparable sales grew for a third consecutive quarter. Shares climbed in after-hours trading as the company’s higher earnings per share guidance for full-year 2017 came in above the Street’s forecast. Adjusted EPS at $0.58 during the three months that ended July 29 was a nickel better than the analyst consensus on Capital IQ, after excluding $0.10 benefit from insurance proceeds related to the fire that occurred on the company’s Fishkill distribution center campus in the fiscal year 2016 and a negative impact of $0.02 from foreign currency fluctuations.

The non-GAAP earnings stood at $0.60 per share in the corresponding period in 2016 and included a $0.22 per share positive impact of restructuring costs in fiscal 2016, the company, which retails through 3,200 stores across 90 countries, said in its earnings statement.

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