Gap Q2 profit tops estimates; raises forecast

San Francisco -- Gap Inc. posted a better-than-expected quarterly profit and sales and raised its full-year profit forecast, helped by strong sales at Old Navy.

Net profit rose to $332 million in the second quarter ended Aug. 2, from $303 million a year ago.

Revenue increased 3% to $3.98 billion. Online net sales increased 11% to $515 million, on top of last year’s 27% increase. The company noted it continues to advance its successful omnichannel platform with the expansion of its reserve in store service to all U.S. Gap stores. The company also launched its order in store pilot, with plans to roll out the service to select U.S. Gap, Banana Republic, Old Navy and Athleta stores later this year.

Same-store sales were flat.  

Also on Thursday, Gap said it planned to introduce its namesake brand in India through 40 franchise-operated stores. The retailer is partnering with Arvind Lifestyle Brand Limited, a subsidiary of Arvind Limited, which is one of India’s largest textile companies.

“India is an emerging, vibrant market and an important next step in our global expansion strategy,” said Steve Sunnucks, global president of Gap.

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