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Is Gap Inc. really back on track?
Gap Inc. says its fourth quarter results show the company's turnaround plan is working, but the retailer continues to post lackluster sales and earnings.
The parent company of Old Navy and Banana Republic says fourth-quarter profits were $214 million, or 53 cents per share, for the three-month period ended Jan. 30. That compares with $319 million or 75 cents per share, in the year-ago period. Revenue dropped nearly 7% in the quarter to $4.39 billion. Same-store sales declined 7%.
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Old Navy runs aground in Q4
Old Navy, the division that has been performing the best for Gap Inc. for years, suffered a serious sales slump in the fourth quarter.
For the fourth quarter ended Jan. 30, Gap Inc.’s net sales were $4.39 billion compared with $4.71 billion for the fourth quarter last year. Same-store sales at Gap Inc. were down 7% versus positive 2% last year. Same-store sales by global brand for the fourth quarter were as follows:
- Gap Global: negative 3% versus negative 6% last year

