Gap's Q4 tops estimates; same-store sales rise for fifth consecutive quarter
Gap on Thursday reported sales and earnings that beat analysts’ forecasts, fueled by another strong performance at its Old Navy division.
Net income fell to $205 million, or 52 cents a share, compared with $220 million or 55 cents per share, in the year ago period. The company reported a charge of $34 million due to new U.S. tax legislation. Excluding one-time items, Gap earned 61 cents a share, topping Street estimates by 3 cents.
Revenue rose 8% to $4.78 billion, also better than expected. Total same-store sales rose 5%, increasing 9% at Old Navy and 1% at Banana Republic. Gap's results were flat.
“Our strong positive comp and margin expansion during the critical holiday quarter affirms our balanced growth strategy,” said Art Peck, president and CEO. “Our outlook for 2018 demonstrates confidence in our strategy and a meaningful step up in earnings capacity for the company.”
Also on Thursday, Gap said it was increasing its annual dividend by more than 5% to 97 cents per share in fiscal 2018.
For the full year, sales totaled $15.9 billion. Overall same-store sales rose 3%, with a 6% increase at Old Navy. Same-store sales fell 1% at Gap and 2% at Banana Republic.
For fiscal year 2018, the company expects diluted earnings per share to be in the range of $2.55 to $2.70 and comparable sales for fiscal year 2018 are expected to be flat to up slightly.
The company ended fiscal year 2017 with 3,594 store locations in 45 countries, of which 3,165 were company-operated.
Net income fell to $205 million, or 52 cents a share, compared with $220 million or 55 cents per share, in the year ago period. The company reported a charge of $34 million due to new U.S. tax legislation. Excluding one-time items, Gap earned 61 cents a share, topping Street estimates by 3 cents.
Revenue rose 8% to $4.78 billion, also better than expected. Total same-store sales rose 5%, increasing 9% at Old Navy and 1% at Banana Republic. Gap's results were flat.
“Our strong positive comp and margin expansion during the critical holiday quarter affirms our balanced growth strategy,” said Art Peck, president and CEO. “Our outlook for 2018 demonstrates confidence in our strategy and a meaningful step up in earnings capacity for the company.”
Also on Thursday, Gap said it was increasing its annual dividend by more than 5% to 97 cents per share in fiscal 2018.
For the full year, sales totaled $15.9 billion. Overall same-store sales rose 3%, with a 6% increase at Old Navy. Same-store sales fell 1% at Gap and 2% at Banana Republic.
For fiscal year 2018, the company expects diluted earnings per share to be in the range of $2.55 to $2.70 and comparable sales for fiscal year 2018 are expected to be flat to up slightly.
The company ended fiscal year 2017 with 3,594 store locations in 45 countries, of which 3,165 were company-operated.