Old Navy helps boost Gap key sales figure; stock soars

NEW YORK, N.Y. – After months of declines, Gap said a key sales figure rose 2 per cent in June, the retailer’s first monthly increase in more than a year.

Shares of Gap rose nearly 5 per cent Friday.

Gap Inc., which operates its namesake stores as well as Banana Republic and Old Navy, has been struggling with falling sales. The last time the company reported an increase in sales at stores open at least a year was March 2015.

The June increase was mainly due to its Old Navy brand. Gap said late Thursday that sales at Old Navy stores open at least a year rose 5 per cent. Meanwhile, sales at Gap stores open a year fell 1 per cent and dropped 5 per cent at Banana Republic.

Sales at stores open at least a year is considered a key indicator of a retailer’s health because it excludes potentially distorting results from stores that were recently opened or closed.

Gap, based in San Francisco, operates about 3,300 stores.

Its shares added $1.07 to $22.70.