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Gap Lifts Annual Sales Forecast on Old Navy Strength, Shares Surge

The company’s turnaround strategy to lower promotions and focus on right product assortment is yielding results after weak growth last year due to lacklustre demand and supply chain issues.
Gap Inc.’s latest turnaround plan looks awfully familiar so far.
Shares of the company surged 21 percent after the bell as the Banana Republic owner saw strong spring shopping. (Shutterstock)

Gap raised its annual sales forecast and its first-quarter results beat market expectations, boosted by strength in its Old Navy and Gap brands as budget-strained Americans snap up its trendy denim bottoms and active wear apparel.

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