Gap raised its earnings-per-share outlook for the year yesterday after its summer lineup helped boost second-quarter results and advanced its turnaround push.
The higher guidance was short of Wall Street expectations, but the company also hiked its annual dividend by 20 cents, or 33 percent, to 80 cents per share. Its shares rose 1 percent to $42.43 in aftermarket trading. Over the past year, the stock is up 21 percent.
Gap owns Banana Republic, Old Navy, Piperlime, Athleta and Intermix stores, in addition to its namesake chain.
Gap’s more upbeat outlook represents a bright spot in the broader industry. Major retailers including Walmart, Target and Macy’s have lowered their expectations for the rest of the year, citing the uncertain economy.