Shares of Gap (NYSE: GPS) were up 30.4% as of 12:45 p.m. ET Friday after the apparel retailer announced stronger-than-expected quarterly results and slightly adjusted its full-year outlook for the better.

Gap's third-quarter 2023 net sales declined 7% year over year to $3.77 billion, translating to GAAP net income of $218 million, or $0.58 per share (down from $0.77 per share in the same year-ago period). Adjusted for one-time items like restructuring charges, Gap delivered non-GAAP earnings of $221 million, or $0.59 per share. Analysts, on average, were only expecting adjusted earnings of $0.20 per share on revenue of $3.61 billion.

Within Gap's top line, its Old Navy brand led the way with net sales declining 1% year over year to $2.13 billion, as the impact of store closures slightly more than offset a 1% increase in comparable-store sales. Gap brand sales were down 15% year over year to $887 million, including a similar 1% comparable-sales decline -- but Gap sales would have fallen a more modest 6% had it not been for the sale of Gap China and the shutdown of Yeezy Gap.

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Source Fool.com