Gap Is Righting the Ship With Old Navy

Is Gap cool again?

Maybe not yet, but it is looking more on trend than it has in a long time. The company, which also owns Old Navy, Banana Republic and Athleta, on Thursday reported that comparable sales fell 2% in its quarter ended Oct. 28. That was much better than the 7.4% decline that Wall Street analysts polled by Visible Alpha had expected. Net income of $218 million was more than three times the number analysts had penciled in. Gap’s shares jumped 15% in after-hours trading following the company’s earnings call on Thursday.