Gap Inc. (GPS) shares surged more than 23% in 澳洲幸运5官方开奖结果体彩网:extended trading on Thursday after the clothing and accessories retailer posted a better-than-expected quarterly earnings report and raised its full-year guidance in signs that the company's turnaround plan is paying off.

For the three month period ending May 4, the retailer posted earnings per diluted share of 41 cents, crushing analysts' estimates of 14 cents a share. Sales in the quarter of $3.39 billion grew 3% from a year earlier and topped expectations of $3.29 billion.

What's Behind Gap's Stellar Earnings?

Gap's 澳洲幸运5官方开奖结果体彩网:comparable store sales increased 3% from the year-ago period, showing a significant improvement from a 4% decline in last year’s corresponding quarter. The turnaround was driven by positive same store sales growth in each of the retailer's four brands, which include Old Navy, Gap, Banana Republic, and Athleta.

Looking ahead, the company raised its full-year guidance, saying it now expects 澳洲幸运5官方开奖结果体彩网:net sales to be up slightly, an improvement on its prior forecast where its projected flat annual sales. It also lifted its full-year 澳洲幸运5官方开奖结果体彩网:operating income outlook to the mid-40% growth range, significantly higher than its earlier forecast of growth in the low-to-mid teens.

“We’re feeling very confident about our quarter and it has given us the confidence to raise our guidance for full year 2024, both the outlook for revenue and operating margin," Gap CEO Richard Dickson told CNBC in an interview following the quarterly results.

Dickson, who Gap appointed CEO last August, has led an ambitious turnaround plan that has seen the retailer work on improving its 澳洲幸运5官方开奖结果体彩网:operational efficiency and reposition the company’s brands at the forefront of culture. Thursday’s quarterly results and outloo𒈔k indicate that plan is working and resonating🍒 with investors.

Monitor This Key Ch🧸art Level Amidﷺ Earnings-Driven Surge

Since finding a bottom in May last year, Gap shares have trended higher, with gains accelerating after the 50-day moving average (MA) crossed above the 200-day MA in early October to form a 澳洲幸运5官方开奖结果体彩网:golden cross pattern. Leading into the retailer’s quarterly results, the stock has rallied towards the 50-day MA after a period of recent 澳洲幸运5官方开奖结果体彩网:consolidation, indicating bullish expectations by market 🌠participants🌞.

Amid the stock’s projected earnings-driven surge on Friday, investors should closely monitor the $28.50 level, an area where the price would likely run into overhead 澳洲幸运5官方开奖结果体彩网:resistance from its March 2024 high.

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