Gap says it picked up wealthier shoppers, and more market share, despite weak clothing demand

Shares of Gap Inc. rallied after hours on Thursday after the clothing retailer pushed its full-year outlook higher, helped by strong holiday trends, more wealthier shoppers and efforts to revitalize its stores against a dreary backdrop for clothing demand.

The company — which runs Gap stores, Old Navy, Banana Republic and Athleta — said it expects sales to be up 1.5% to 2%, compared with a prior forecast for “up slightly.” The chain also raised its forecasts for gross margin and operating income.