Gap surprises in January

Gap Inc. reported higher than expected sales for January and the fourth quarter, fueled by strong increases at Old Navy.



The retailer reported that net sales for the four-week period ended January 28, 2017 increased 2% to $828 million.



Total same-store sales for the month rose 1%, led by a 3% gain in the namesake brand and a 2% increase at Old Navy. The ailing Banana Republic continued to slump, with a 4% decrease.



“Against a challenging retail backdrop, we’re pleased to report growth in our top-line and comp sales during the critical holiday quarter,” said Art Peck, CEO, Gap. “We remain focused on actions that will strengthen our brands and recapture market share.”



For the fourth quarter of fiscal year 2016, Gap net sales increased 1% percent to $4.43 billion compared with $4.39 billion for the fourth quarter last year.



Gap’s comparable sales for the fourth quarter of fiscal year 2016 were up 2%. By brand, sales rose 5% at Old Navy, and were flat at Gap. Same-store sales fell 4% at Banana Republic.