Gap Inc. (GPS), a premier international specialty retailer, has reported healthy third quarter results despite challenging market conditions. The company reported net income of $307 million or 44 cents per share during the quarter compared to $246 million or 35 cents per share in the year-earlier quarter.  The robust earnings were primarily driven by strong sales at its low-price Old Navy segment and the highest third quarter operating margins in a decade. Net sales during the quarter were $3.59 billion compared to $3.56 billion in the year-ago quarter, largely due to a 10% increase in comparable sales across 1,060 Old Navy stores that account for about 40% of the total sales.  The Old Navy chain has benefited from the increasing preference among U.S. shoppers for lower-price and discount stores due to the continued challenging macroeconomic environment. Gross margins increased 380 basis points year-over-year to 42.5%. Operating ...

Gap Inc. (GPS), which announces third-quarter results after today's closing bell, just declared a quarterly dividend of $0.085 per share, which translates into an industry-leading dividend yield of 1.5%. The company also reported sales growth for the month of October.

Company Description

Gap Inc. is a global specialty retailer that sells clothing, accessories and personal care products for men, women, children and babies under the Gap, Old Navy, Banana Republic, Piperlime and Athleta brands. The company operates stores in the United States, Canada, the United Kingdom, France, Ireland and Japan.

Gap also has franchise agreements with unaffiliated franchisees to operate Gap and Banana Republic stores in many other countries around the world. Under these agreements, third parties operate or will operate stores that sell apparel, purchased from Gap, under Gap's brand names.

Estimates are Bullish Ahead of Earnings Announcement

Analysts polled by Zacks have been upbeat on GPS ahead of today's

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Gap Inc. (GPS) continues to see bullish Zacks Consensus Estimates. The current full year forecast of $1.40 per share is up 5 cents over the past month.

For 2010, analysts polled by Zacks are calling for earnings of $1.53 per share, versus last month's $1.48.

The company recently announced that it will return to television advertising in November and that it will continue to invest internationally, including: opening its first Gap store in China in 2010; expanding its Outlet store presence internationally; and launching online businesses in Canada and the United Kingdom in 2010.

"Old Navy's performance this year has shown what we can deliver through consistent products, re-invigorated marketing, and an enhanced store environment," said Glenn Murphy, chairman and CEO of Gap Inc. "With our improved economic model, we're ready to step up our investments and strategies to regain market share

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Gap Inc. (GPS), a premier international specialty retailer, has reported a mixed bag of same-store sales in September with strong performance in the Old Navy division and relatively weaker ones in its other segments.   Same-store sales measure sales at stores which have been open for at least a year, and are a widely used metric to gauge retailer performance as they measure growth at existing stores rather than at the newly opened ones. Overall September same-store sales of Gap decreased 1% compared to an 11% decline in the year-ago period.   By segment, same-store sales in Old Navy increased 13%, decreased 12% in Banana Republic, decreased 8% in the Gap division, and declined 4% in the international division. While same-store sales fell in almost all segments, the only silver lining was the largest same-store sales increase in over five-and-a-half years in the Old Navy segment.   Total ...

Gap Inc. (GPS) reported comparable store sales slipping by 3% year-over-year. While sales were slightly lower, which is not unique amid the current economic environment, GPS shares continued climbing and are trading close to a 52-high. The company also recently released sad news, announcing that Donald G. Fisher, co-founder of Gap, died after a long and heroic battle with cancer.

Company Description

Gap Inc. is a global specialty retailer that sells clothing, accessories and personal care products for men, women, children and babies under the Gap, Old Navy, Banana Republic, Piperlime and Athleta brands. The company operates stores in the United States, Canada, the United Kingdom, France, Ireland and Japan.

Gap also has franchise agreements with unaffiliated franchisees to operate Gap and Banana Republic stores in many other countries around the world. Under these agreements, third parties operate or will operate stores that sell apparel, purchased from Gap, under Gap's brand

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Gap Inc. (GPS) is a premier international specialty retailer offering a diverse range of clothing, accessories and personal care products for  men, women, children and babies. Its flagship brands include Gap, Banana  Republic, Old Navy, Piperlime and Athleta. Approximately three-fourths of Gap’s revenue is generated from its operations in the U.S.   With a market cap of over $15 billion, The Gap is the industry leader by a stretch in the highly fragmented specialty retail sector. The Gap’s globally recognized brands complement one another, enabling it to leverage its position in the sector.   The Gap has a strong balance sheet with cash and cash equivalents of $2.1 billion at quarter end and no outstanding debt. Furthermore, the company  has $439 million available under its $500 million revolving credit facility.   Management has taken stringent cost-control measures and prudent inventory management policies to reduce the operating expenses and ...

The Gap, Inc. (GPS) shares are up about 15% since being featured as a Zacks Rank Buy in late June.

Strong Back-to-School Sales

Old Navy sales rose 4% in August, which lead to net sales of $1.12 billion for the month of August. Sales are down slightly, from $1.14 billion, last year, but considering the retail environment this is quite encouraging.

A Non-Surprise Surprise

The sales report came on the heels of the last quarterly announcement, which said earnings per share were 33 cents, a penny higher than the same period last year and the Zacks Consensus Estimate. While it is an earnings surprise, The Gap has beaten expectations in all but 1 quarter in the past 5 years. In late 2005 the company met expectations.

Estimates Still Rising

In the past month, 19 of 25 analysts polled by Zacks have increased their outlook for the full-year. The average estimate is

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Gap, Inc. (...

Gap Inc. (GPS), a premier international specialty retailer, plans to re-launch its denim line to bring back customers and revive its sagging sales.   The move is a part of a major revamp process of the self-branded denims for men and women that have seemingly lost its mass appeal to trendy fashion jeans by a host of its rivals. Denim had been the cornerstone for the company, accounting for 20%−30% of the total Gap brand sales. However, Gap jeans were gradually falling out of favor as it failed to update itself with the changing times.   The new denim line focuses on easy fittings and claims to be more stylish and premium. Most of the styles are priced at $54 and $59, while the more complicated wash jeans are priced at $69. Gap is promoting its new denims through a digital and print marketing campaign called “Born to Fit"....

If history is our guide, then the rally we’ve seen in U.S. stocks in recent weeks is more than just a periodic run-up in share prices – it’s the initial stage of a prolonged bull market.

The 13-week rally the Dow Jones Industrial Average has experienced off its March lows is the most powerful surge that index has seen since the Great Depression. If we look to history, stocks should continue to rally over the next three months.

“I say this with the utmost confidence and my fingers tightly crossed: This is the start of a new bull run,” Hugh Johnson, chairman of Johnson Illington Advisors, told MarketWatch.com.

The 13-week stretch from March 9 through May 29, which saw the Dow soar 28.3%, has been bested only once – by the 40.8% run-up the Dow enjoyed in the 13 weeks that followed its hitting a bottom in May 1932. The

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