Gap upgrades full year forecast

Gap yesterday reported a higher second-quarter profit, helped by the sales gains at its namesake and Old Navy chains and online, leading the clothing retailer to raise its full year profit forecast and dividend.

The clothing retailer, which also operates the Banana Republic chain, now expects a profit for the year ending in February of $2.57 to $2.65 per share, five cents above its previous range. The company also raised its annual dividend to 80 cents per share.