Gap Inc. Shares Soar After Strong Q3 Earnings, Despite Sales Slump

Old Navy boosts performance with increased sales, while other brands face a 'longer recovery' time.

Gap Inc. shares soared nearly 30% after a stronger-than-expected third quarter earnings report, despite a 7% drop in revenue from the previous year.
Old Navy, a brand under Gap, was the only one to post an increase in same-store sales, helping the company beat quarterly estimates.
Gap's CEO, Richard Dickson, credited the company's financial discipline for the strong results, putting the company on a stronger financial footing.
Despite the positive results, Gap warned of a slow holiday shopping season ahead, expecting flat to slightly negative sales compared to 2022.
Sales declined at Gap's other brands, including Banana Republic and Athleta, which the company said would require a 'longer recovery' time.