Gap reported revenue that beat market expectations on Thursday as same-store sales rose 5 percent. The retailer also raised its quarterly dividend to 20 cents from 15 cents a share.
Gap, which is based in San Francisco, owns Banana Republic, Old Navy, Piperlime, Athleta and Intermix stores, in addition to its namesake chain. Since early last year, it has been invigorating sales with more brightly-colored clothing, designer collaborations and livelier stores.
After the announcement, the company's shares climbed more than 2 percent in extended-hours trading. (Click here to get the latest quote.)
Earnings excluding items rose to 64 cents per share in the second quarter from 49 cents a share in the year-earlier period.
Revenue increased 8.1 percent to $3.87 billion from $3.58 billion a year ago.