Gap meets 4Q profit forecasts, helped by Old Navy
Feb. 23, 2017
SAN FRANCISCO (AP) — Gap Inc. met Wall Street expectations with its fourth-quarter profit on Thursday, helped again by results at its Old Navy brand.
The clothing company with brands including Gap, Banana Republic, Old Navy and Athleta, said it earned $220 million, or 55 cents per share in the period that ended Jan. 28. That compares with $214 million, or 53 cents a share, a year earlier.
Earnings, adjusted for one-time gains like a tax benefit and costs including store closures, came to 51 cents per share. The results matched Wall Street expectations tallied by Zacks Investment Research.
The clothing chain posted revenue of $4.43 billion, up from $4.39 billion a year earlier. That beat the forecasts of eleven analysts surveyed by Zacks who expected $4.4 billion. Net sales at Old Navy rose in the quarter, while those at Gap and Banana Republic fell from a year earlier.
The San Francisco company said it planned to focus its store openings in the current fiscal year on Old Navy and Athleta locations, with store closings expected in the Gap brand.
"We will maintain our focus on improving the quality and relevance of our products, increasing our responsiveness to trends and demand, and creating more synergy across channels, said CEO Art Peck.
Gap expects full-year earnings to be $1.95 to $2.05 per share. Analysts are expecting $2.06 a share, according to FactSet
Gap shares were little changed in after-hours trading. The shares have risen nearly 7 percent since the beginning of the year, while the Standard & Poor's 500 index has climbed roughly 6 percent. They are down 12 percent in the last 12 months.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on GPS at https://www.zacks.com/ap/GPS
Keywords: Gap, Earnings Report, Priority Earnings