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Gap's 1st-qtr net income is flat, but sales rise, company raises guidance, shares climb
SAN FRANCISCO (AP) ' Clothing seller Gap Inc. says its first-quarter net income was unchanged from a year ago as rising costs and a drop in overseas sales offset sales gains at its Old Navy, Gap and Banana Republic chains.
The results met analyst forecast for adjusted earnings per share, and the company raised its guidance for the year.
Gap said its net income was $233 million, or 47 cents per share. That includes a penny-per-share gain from an tax accounting change and tops the average forecast from analysts for earnings of 46 cents per share.
Gap's quarterly revenue rose 6 percent to $3.49 billion, topping analysts' average forecast for $3.46 billion.
And revenue from stores open at least a year, which is an important gauge of retailers' health, rose 4 percent.