(Reuters) -Apparel retailer Gap on Thursday posted a 5% jump in its second-quarter sales on robust demand for its Old Navy and namesake brands, in a surprise early announcement.
The company has been attempting to turn around its business by bringing in fresher styles and keeping a tight leash on costs.
Net sales at Old Navy were up 8% over the year earlier, while the Gap banner saw 1% growth.
The retailer reaffirmed its net sales and operating expense outlook for fiscal 2024 and increased its gross margin expectations.
Gap now expects annual gross margin to expand by about 200 basis points, compared with its prior forecast of at least a 150-basis-point increase.
The company, which was scheduled to report results after markets close on Thursday, posted net sales of $3.72 billion for the quarter ended Aug. 3, compared with $3.55 billion a year earlier.
Shared of Gap were up about 3%, after being briefly halted.
(Reporting by Savyata Mishra in Bengaluru; Editing by Shilpi Majumdar)
