Old Navy helps boost Gap key sales figure; stock soars
NEW YORK - After months of declines, Gap (GPS) said a key sales figure rose 2 percent in June, the retailer's first monthly increase in more than a year.
Shares of Gap rose more than 5 percent Friday.
Gap Inc., which operates its namesake stores as well as Banana Republic and Old Navy, has been struggling with falling sales. The last time the company reported an increase in sales at stores open at least a year was March 2015.
The June increase was mainly due to its Old Navy brand. Gap said late Thursday that sales at Old Navy stores open at least a year rose 5 percent. Meanwhile, sales at Gap stores open a year fell 1 percent and dropped 5 percent at Banana Republic.
Sales at stores open at least a year is considered a key indicator of a retailer's health because it excludes potentially distorting results from stores that were recently opened or closed.
Gap, based in San Francisco, operates about 3,300 stores.
Its shares rose $1.08, or 5 percent, to $22.72 in afternoon trading Friday.