By Kim Khan
Investing.com - The retail rally continued in after-hours trading Thursday as investors bid up shares of Gap.
Gap (NYSE:GPS) gained 6% postmarket after the company released upbeat guidance and said it no longer plans to spin off Old Navy into a separate company.
The company said it expects full-year 2019 same-store sales and net sales to be at the higher end of guidance.
Earnings will be “moderately above” previous guidance of $1.70 to $1.75 per share, thanks to “better than anticipated promotional levels over the holiday period, particularly at Old Navy,” the company said.
The National Retail Federation reported earlier today that holiday sales rose 4.1% in 2019 from the year-ago period.
"The plan to separate (Old Navy) was rooted in our commitment to value creation from our portfolio of iconic brands," Robert Fisher, Gap interim president and CEO, said in a statement. "While the objectives of the separation remain relevant, our board of directors has concluded that the cost and complexity of splitting into two companies, combined with softer business performance, limited our ability to create appropriate value from separation.”
The company will appoint a new CEO to oversee all its brands.