Gap Inc. (NYSE: GPS) reported second quarter EPS of $0.49 and $3.58 billion in sales after markets closed today. In the same period a year ago, the clothing retailer reported EPS of $0.35 on revenue of $3.39 billion. Second-quarter results compare to the Thomson Reuters consensus estimates for EPS of $0.48 and $3.53 billion in revenue.

The company’s chairman/CEO said:

Customers responded well to our product offerings across our brands, driving a healthy increase in sales and earnings per share during the quarter. Our continued focus on product and store execution are helping to drive positive momentum and we’re committed to sustaining solid performance for the remainder of the year.

Gap raised full fiscal year its EPS guidance to $1.95-$2.00, compared with the current consensus estimate for EPS of $2.08. The company also raised it operating margin guidance from about 10% to about 11% and said it would pay the remaining $360 million balance on its term loan during the third quarter.

Same-store sales rose 4% compared with the second quarter of 2011 and the company’s revenue from its online division rose by 24% to $384 million. Same-store sales at namesake stores rose 7% in North America, while Banana Republic stores in North America also posted a 7% gain and Old Navy store sales rose 3% in North America. International same-store sales were down 5%.

Gap’s shares are up about 0.9% in after-hours trading at $34.53. The current 52-week range is $15.08-$34.92. Thomson Reuters had a consensus analyst price target of $34.05 before today’s results were announced, so look for a target price adjustment in the near future.

Paul Ausick

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