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:

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  Gap Global: negative 3% versus negative 6% last year

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  Banana Republic Global: negative 14% versus positive 1% last year

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  Old Navy Global: negative 8% versus positive 11% last year

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  Old Navy has now reported same store sales declines for the past three months.

“We are pleased to guide to the high end of our previously announced full-year earnings per share range,” said Sabrina Simmons, CFO of Gap Inc. “As we kick-off fiscal year 2016, our brands look forward to introducing their new Spring collections to customers.”



The company narrowed its full-year adjusted diluted earnings per share guidance range for fiscal year 2015 to $2.41 to $2.42, excluding the one-time negative impact from the previously announced strategic actions of about 20 cents per diluted share, for fiscal year 2015. For the fourth quarter of fiscal year 2015, the company expects adjusted diluted earnings per share to be in the range of 56 to 57 cents.



Gap Inc. will release full fourth quarter earnings results on Feb. 25.