US based apparel marketer – Gap Inc said its Board of Directors have approved a new $500 million share repurchase authorization for its common stock.
The new $500 million stock repurchase program follows its previous $1 billion share repurchase program, which it initiated in November 2013.
Prior to the November announcement, Gap had increased its annual dividend per share by one-third, from $0.60 to $0.80, representing the second increase in fiscal year 2013.
“Through the end of the second quarter, we’re pleased to have distributed about $800 million in cash to shareholders through dividends and share repurchases,” said Sabrina Simmons, CFO at Gap Inc.
She added, “The additional authorization to repurchase stock underscores management and the board’s continued confidence in our long-term strategy.”
In the second fiscal quarter of 2014, Gap posted earnings per share increase of 17 percent, from a year earlier quarter.
Second fiscal quarter of 2014 diluted earnings per share stood at $0.75 compared with diluted earnings per share of $0.64 in the second fiscal quarter of 2013.
Gap said the second quarter of 2014 diluted earnings per share includes a benefit of about $0.05 from a gain on the sale of a building owned, but no longer occupied by the company.
Excluding this benefit, the apparel retailers’ adjusted diluted earnings per share stood at $0.70.
Net sales for the second quarter of 2014 rose 3 percent to $3.98 billion, compared with $3.87 billion in the prior year quarter.
Gap Inc. reported fiscal year 2013 net sales of $16.1 billion and its products are sold in more than 90 countries through about 3,200 company-operated stores and 400 franchise stores.
