It wasn’t quite the way that Richard Dickson had wanted to celebrate his first year in charge of The Gap.

The executive, 56, credited with creating Barbiemania while reviving the fortunes of Mattel, the toymaker, had been expecting the Old Navy clothing retailer to release its second-quarter earnings after the close of normal trading on Wall Street.

Unfortunately, the results were published briefly on the company’s website in the morning, New York time, prompting its shares to drop by almost 10 per cent before trading in the stock was halted.

“As soon as the error was caught, we notified the NYSE (New York Stock Exchange) and trading of our stock was halted temporarily,” Gap said.

Once order had been restored and trading resumed, investors liked what they saw. The owner of Banana Republic and Athleta reported a 5 per cent rise in second-quarter sales, with net sales at Old Navy up by 8 per cent on the same three-month period a year ago.

The company, which was founded in 1969 by Donald and Doris Fisher in San Francisco, California, has been seeking to turn around its business by bringing in fresher styles and keeping a tight control on costs. In 2021 Gap closed its 81 stores in the UK and the Republic of Ireland.

Gap reaffirmed its net sales and operating expense outlook for the present financial year and increased its gross-margin expectations. The retailer now expects annual gross margin to expand by about 200 basis points, compared with its previous forecast of at least a 150-basis-point increase. Gap’s net sales in the three months to August 3 were worth $3.72 billion, compared with $3.55 billion a year earlier.

By early afternoon in New York the shares were 3.1 per cent, or 69 cents, higher at $23.12.