The Gap Releases Q3 Earnings, Beats Street Estimates - Gap (NYSE:GPS)

The Gap, Inc.GPS

released its 2013 third quarter earnings on Thursday after the market closed. Important Financials in the Press Release:

Gap reported Q3 EPS of $0.72 above the Street's estimate of $0.71. Earnings were up 14% over last year.
Net sales were up 3% in the third quarter, or 5% on a constant currency basis, to $3.98 billion.
Comparable sales were up 1% in Q3 versus a 6% increase last year due to last year's 53rd week.
FY EPS guidance range was confirmed between $2.57-2.65.
Operating margin increased 100 basis points to 14.5%.
Q3 operating expenses were $1 billion, down $60 million compared with 3Q12.
Gap Inc reported $966 million in cash and cash equivalents.
Year-to-date fiscal capital expenditures were $487 million.

Business Highlights:

Online sales increased 20% in Q3 compared with last year.
Gap expanded their store base in China to a total of 73 stores. Gap opened 18 additional stores in the third quarter.
The company announced that they will open their first franchise-operated Old Navy store the Philippines next year.
Gap opened an additional 15 Athleta stores this quarter for a total of 61 stores.
The company grew its Franchise business with the addition of Brazil, Costa Rica, Hungary, and Peru markets. Gap Inc. now has over 350 stores in 40 global markets.
Gap Global comparable sales results this quarter was +1% versus last year's +4%.
Banana Republic Global comparable sales results this quarter was -1% versus last year's +5%.
Old Navy Global comparable sales results this quarter was 0% versus last year's +9%.

The webcast and conference call for the third quarter fiscal year 2013 results will be hosted by Katrina O'Connell, vice president of Corporate Finance and Investor Relations today at 2:00 p.m. Pacific Time. Investors and the general public can access the call via phone at 1-855-5000-GPS or 1-855-500-0477 (participant passcode: 9886415). International callers may dial 913-643-0954. The webcast can be accessed at www.gapinc.com.

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