Gap Inc. reported strong third-quarter fiscal 2024 results, with net sales increasing 2% year-over-year to $3.83 billion and comparable sales up 1%. The company's diluted earnings per share reached $0.72, significantly exceeding analyst estimates of $0.56 per share.
Operating margin expanded by 270 basis points to 9.3%, marking the highest Q3 operating margin in seven years. Gap Inc. also achieved its seventh consecutive quarter of market share gains across all its brands, demonstrating the effectiveness of its brand reinvigoration playbook.
Based on this strong performance, Gap Inc. raised its full-year fiscal 2024 outlook, now expecting net sales to grow between 1.5% and 2.0% and underlying operating income growth in the mid-to-high 60% range. The company ended the quarter with a strong cash balance of approximately $2.2 billion and generated $540 million in free cash flow year-to-date.
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