Gap surges 22% as apparel maker's turnaround strategy starts to pay off

Gap now sees slightly up from last year compared with prior expectations of roughly flat sales.

It has tried to improve its business by introducing more across its while ramping up to appeal to picky shoppers, who have otherwise scaled back on non-essential purchases.

"(The CEO's) personnel, product, and operating changes have already reinvigorated a company that had been floundering for years," said 's David Swartz.

Gap's eponymous brand posted a 3% comparable sales growth in the first-quarter, while the Old Navy and Athleta banner posted 3% and 5% increases, respectively.

"Just one quarter into the , the company raised its annual outlook, a solid sign that green shoots at the brands are taking root," 's Dana Telsey said.

The average rating of 20 analysts on Gap is "hold", with a median price target of $23, according to data. As many as 10 brokerages lifted their price targets on Friday.

Gap's median price-to-earnings multiple (P/E) for the next 12 months, a common benchmark for valuing stocks, is 14.66, above the industry median of 12.57.

Retailers including and Target have indicated in their recent results that apparel demand has begun to pick-up after a slowdown last year.

Gap has gained share in a competitive market where the consumer remains extremely choosy, said Mari Shor, an equity analyst at Columbia Threadneedle Investments.

(Reporting by Granth Vanaik in Bengaluru; Editing by Tasim Zahid)