Gap raises outlook after stronger 3rd quarter

Murphy said the results highlight how its lineup is resonating with customers.

"We are ready to compete and win this holiday season as we drive to build upon our top line growth," Murphy said.

For the three months ended Oct. 27, the company said it earned $308 million, or 63 cents per share. That's compared with $193 million, or 38 cents per share, in the year-ago period. The per-share results got a 2-cent boost from a reduction in the number of outstanding shares.

Total revenue rose 8 percent to $3.86 billion, from $3.59 billion last year.

Analysts, on average, expected a profit of 62 cents per share, on revenue of $3.84 billion, according to FactSet.

The company now expects earnings per share of $2.20 to $2.25 for the full year, up from the previous forecast of $1.95 to $2 per share. Wall Street was forecasting $2.25 per share, on average, with estimates ranging from $1.85 to $2.38.

Gap shares rose $1.22, or 3.7 percent, to $34.48 in after-hours trading.