Gap raises 2014 income on positive Q4

San Francisco -- Gap Inc. raised its annual profit guidance based on its fourth-quarter sales and reduced taxes. The retailer expects to report a profit of $2.86 to $2.87 per share for the year, up from its previous estimate of $2.73 to $2.78 per share.



Gap reported that its net sales increased 3% for the quarter, to $4.71 billion compared with $4.58 billion for the fourth quarter last year. Same-store sales rose 2%.



We’re pleased to have grown comparable sales 2% for the fourth quarter, driven by a strong, double-digit comp at Old Navy,” said Sabrina Simmons, CFO, Gap Inc.



Net sales for the four-week period ended January 31, 2015 were $888 million, compared with net sales of $899 million for the year-ago period as sales for its namesake brand slumped. Banana Republic and Old Navy, however, reported improved results.