Gap gets New Year gift as comparable shares rise 4 percent in December

Apparel retailer Gap Inc has reported a surprise rise in December comparable sales, helped by strong demand for its Gap and Old Navy brands, a bright spot in the overall retail gloom.

The company's shares rose 7.4 percent to USD 24.98 in after-market trading on Thursday.

Gap, which is also shutting stores and reducing overhead costs, said it now expected full-year 2016 adjusted profit to be modestly above the higher end of the previously forecast range of USD1.92 per share.

The company's comparable sales for December rose 4 percent, while analysts on average had expected a fall of 0.7 percent.