Gap, Inc. ( GAP ) shares are moving higher on Friday after the company reported better-than-expected 2024 third-quarter earnings on Thursday after the bell.

What Happened: Gap shares traded about 13% higher on Thursday after the company released earnings. The company’s earnings report included earnings per share of 72 cents, beating analyst estimates of 57 cents.

In addition, the company reported sales of $3.82 billion, beating analyst estimates of $3.81 billion. The company broke down its sales for the quarter further. Specifically, Gap reported store sales decreased by 2% year-over-year and online sales increased by 7% year-over-year.

Additionally, the company reported net sales of $2.2 billion from Old Navy, $899 million from Gap, $469 million from Banana Republic and $290 million from Athleta.

Furthermore, Gap reported other key pieces of financial data. It reported operating expenses of $1.3 billion and operating income of $355 million. The company said it ended the quarter with $2.2 billion in cash, cash equivalents and short-term investments, a 64% growth compared to the prior year.

“I’m proud that Gap Inc. ( GAP ) delivered another successful quarter, growing net sales for the 4th consecutive quarter and gaining market share across all brands while meaningfully expanding operating margin,” said President and CEO, Richard Dickson.

“Consistent execution of our strategic priorities, including the rigor and repetition we’re applying to our brand reinvigoration playbook, is making us a stronger company and demonstrates our continued progress in unlocking Gap Inc.’s full potential.”

Gap raised its outlook for the 2024 fiscal year. It now expects revenue to be up 1.5% to 2% and operating income margin in the mid to high 60% range.

Analyst Changes: Following the earnings report, several analysts issued price target adjustments.

Telsey Advisory Group analyst Dana Telsey maintained a Market Perform rating on Gap and maintained a $26 price target.

B of A Securities maintained a Neutral rating on Gap and raised the price target from $25 to $28.

Morgan Stanley analyst Alex Straton maintained an Overweight rating on Gap and raised the price target from $29 to $30.

Barclays analyst Adrienne Yih maintained an Overweight rating on Gap and raised the price target from $31 to $32.

Wells Fargo analyst Ike Boruchow maintained an Overweight rating on Gap and raised the price target from $28 to $30.

Evercore ISI Group analyst Michael Binetti maintained an Outperform rating on Gap and raised the price target from $32 to $33.

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GAP Price Action: At the time of writing, Gap shares are trading 9.07% higher at $24.04, according to data from Benzinga Pro.

Image: Courtesy of Gap, Inc. ( GAP )