Gap Inc. reports FY earnings growth

SAN FRANCISCO Gap Inc. reported net earnings for fiscal year 2008 increased to $967 million, or $1.34 per share on a diluted basis, compared with $833 million, or $1.05 per share on a diluted basis, for fiscal year 2007. Net earnings increased by 16% over fiscal year 2007, while earnings per share increased 28% over the prior year.

For the fourth quarter, which ended Jan. 31, the company’s net earnings were $243 million, or 34 cents per share on a diluted basis, compared with $265 million, or 35 cents per share on a diluted basis, for the same period last year.

“Our ability to drive healthy margins and achieve significant cost savings helped us deliver earnings growth of 16% over the course of a very challenging year,” said Glenn Murphy, chairman and CEO of Gap Inc.

Fourth quarter net sales were $4.1 billion, compared with $4.7 billion for the fourth quarter of last year. The company’s fourth quarter comparable-store sales decreased 14%, compared with a decrease of 3% in the fourth quarter of last year. The company’s online sales for the fourth quarter increased 10% to $319 million, compared with $289 million for the fourth quarter of last year.

Net sales for the 52 weeks ended Jan. 31 were $14.5 billion compared with $15.8 billion for the 52 weeks ended Feb. 2, 2008. The company’s fiscal year 2008 comparable-store sales decreased 12% compared with a decrease of 4% for the prior year. The company’s online sales for the fiscal year increased 14% to $1.03 billion, compared with $903 million in the prior year.