Gap raises outlook after stronger 2Q GAP has raised its earnings per share outlook for the year, after its northern summer lineup helped boost second-quarter results and advanced its turnaround push. The higher guidance was short of Wall Street expectations, but the company also hiked its annual dividend by 20 US cents, or 33 per cent, to 80 US cents per share. Its shares rose one per cent to $US42.43 in aftermarket trading. Over the past year, the stock is up 21 per cent. Gap Inc, which is based in San Francisco, owns Banana Republic, Old Navy, Piperlime, Athleta and Intermix stores, in addition to its namesake chain. The company is the US' largest mall-based clothing chain operator, and its results provide insight into consumer spending. Since early last year, Gap has been invigorating sales with more brightly-coloured clothing, designer collaborations and livelier stores. Last October, the company also announced a management overhaul to help it respond more quickly to shifting tastes around the world. The change put the North American, international, online, outlet and franchise divisions under a single global executive for each of the company's brands. The company also formed a new innovation and digital strategy team. Gap's more upbeat outlook represents a bright spot in the broader industry. Major retailers including Wal-Mart Stores Inc, Target Corp and Macy's have lowered their expectations for the rest of the year, citing the uncertain economy. As Gap reported earlier this month, sales at stores open at least a year was up five per cent for the three months ending August 3. Gains at Gap and Old Navy offset a decline at Banana Republic. The company earned $US303 million ($A338.04 million), or 64 US cents per share, which was on the high-end of its latest guidance of 62 to 64 US cents per share. Analysts on average expected 63 US cents per share. A year ago, the company earned $US243 million, or 49 US cents per share. Revenue rose eight per cent to $US3.87 billion, in line with Wall Street expectations. Gap now expects to earn between $US2.57 and $US2.65 per share for the full year, up from the previous forecast of $US2.52 to $US2.60 per share. Analysts had forecast earnings of $US2.77 per share for the full year, according to FactSet.