Gap's Q3 profit rises 9.4%; OKs $1 billion share repurchase authorization

San Francisco -- Gap Inc. reported a 9.4% increase in third-quarter profit as the retailer's turnaround continues. The company also reaffirmed its full-year profit guidance and said it is increasing its stock buyback authorization by $1 billion.

The chain posted net income of $337 million in the three-month period ended Nov. 2, compared with $308 million last year.

Revenue rose 2.8% to $3.98 billion. Same-store sales increased 1%. By division, Gap's results were up 1%, while Banana Republic's metric was down 1%. Old Navy was flat from a year ago.

This quarter marks our seventh consecutive quarter of positive comp sales growth,” said Glenn Murphy, chairman and CEO of Gap. “We are pleased to maintain our momentum of growing sales and earnings per share this quarter.”