New Stores Push Gap to Record Sales And Earnings
SAN FRANCISCO (AP) _ The Gap Inc. had record sales and profits for both the fourth quarter and year-end 1994, with much of the growth coming from new stores, the company said Thursday.
For the fourth quarter ended Jan. 28, earnings rose 9 percent to $118.8 million, or 82 cents per share, compared to $109.3 million, or 75 cents per share, in the same period a year earlier.
Sales for the quarter increased 14 percent to $1.21 billion compared to $1.06 billion last year.
However, comparable store sales growth was only 1 percent in the fourth quarter of 1994, compared to a 4 percent increase in the fourth quarter of 1993. For the year, comparable store growth increased 1 percent, the same as in 1993.
For fiscal 1994, earnings rose 24 percent to $320.2 million or $2.20 per share, compared to $258.4 million or $1.78 per share in fiscal 1993.
Sales for the year increased 13 percent to $3.723 billion compared to $3.296 billion last year.
``Our record profits were achieved while not only growing our existing businesses, but rapidly expanding our new business _ Old Navy _ whose first store opened less than a year ago,″ said Donald G. Fisher, chairman and chief executive officer.
Gap grew in 1994 by opening 172 new stores, closing 34 stores, and expanding 82 stores, for a net square footage gain of 21 percent.
Fisher said Gap will spend up to $300 million in 1995 to open 175-200 new stores, increasing square footage another 20 percent.
Gap, Inc. operates 1,508 stores _ 892 Gap, 369 GapKids, 188 Banana Republic and 59 Old Navy stores _ compared to 1,370 stores a year ago.