Gap profits grew 25% in its third quarter helped by growing sales at its Old Navy fascia.
Total sales grew one per cent to $3.59bn (£2.17bn) for the quarter to October 31. Like-for-like sales at Old Navy were up 10% compared to -18% the year before.
Chairman and chief executive for the US fashion giant Glenn Murphy said: “We are pleased with our third quarter results, particularly our ability to deliver earnings 25% above last year and our highest third-quarter operating margin in a decade.
“Looking ahead to the holiday season we’re focussed on gaining market share as we invest in marketing and present a strong value proposition to customers across our brands.”
International comparable sales including the UK were down six per cent compared to a fall of one per cent last year, total sales grew to $378m (£229m).
Gap said that following the results its board has authorised a new $500m (£302m) share repurchase programme.
The retailer has also announced that it will collaborate for a second timed with British designer Stella McCartney on a collection for its babyGap and GapKids stores in America and Canada, the UK, France and Ireland, and Japan, as well as online in the US.
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