Gap (GPS) exceeded Wall Street's second-quarter predictions, in receipt of a boost up from its Old Navy franchise. But inventory levels are proceeding higher, which possibly will indicate belligerent promotions for fall.

Through the quarter, the specialty retailer made $234 million, or 36 cents a share, in contrast with $228 million, or 33 cents, for Gap a year ago during the corresponding period.

Gap's revenue went up from $3.24 billion to $3.32 billion, whereas same-store sales deteriorated 4% at namesake stores, Banana Republic progressed 3% at and were up 2% at Old Navy.

Forecasters were expecting a profit of 35 cents on revenue of $3.31 billion.

Gap repeated its full-year stance in the range of $1.77 to $1.82 a share, which would be a 12% to 15% step up from last year. Wall Street is looking for a profit of $1.79 a share.

Gap cautioned that its inventory levels are mounting, as inventory per square foot shot up 12% by the close of the second quarter. It forecasts inventory will increase further in the top end single-digits by the close of the third-quarter. This may indicate more profound discounts through the ever pivotal fall and back-to-school selling period.

The company also made known a new $750 million share repurchases agenda.

Shares of Gap are pressing forward 2.5% to $18.15 in after-hour goings-on.