Gap (NYSE:GPS) shares rose more than 8% on Friday following the announcement of their fiscal fourth quarter 2023 results, which exceeded analysts' expectations.

The apparel company reported an earnings per share of $0.49, outperforming the predicted $0.22 by analysts. Its revenue reached $4.3 billion, surpassing the expected $4.22 billion.

The report highlighted that comparable sales for the period were stable, matching last year's performance, while the gross margin experienced a significant increase, improving by 530 basis points to 38.9% compared to the same quarter the previous year.

For the upcoming first quarter of 2024, Gap forecasts its net sales to be approximately the same as the prior year, with an anticipated gross margin improvement of at least 100 basis points. For the full year 2024, the company projects its net sales to remain constant.