Gap Jumps After Posting Better-Than-Expected Earnings

  • Inventory growth slowed as Gap pared excess merchandise
  • Performance driven by gains at Gap, Banana Republic brands

A customer enters a Gap retail store in New York.

Photographer: Gabby Jones/Bloomberg
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Gap Inc. posted quarterly sales and profit that surpassed Wall Street’s estimates -- a sign the apparel retailer is making progress in controlling an inventory buildup that had eroded investor confidence earlier this year.

Comparable sales, a key gauge for retailers, rose 1% in the quarter ended Oct. 29. That’s better than the 3.4% decline from analysts surveyed by Bloomberg.