Gap Sees Better-Than-Expected Profit for Holiday Quarter
07 February 2017 - 9:42AM
Dow Jones News
By Maria Armental
Gap. Inc. expects to top profit targets for the year, following
stronger-than-expected sales during the holiday quarter.
Shares, down 3% over the past 12 months, rose 3% to $23.69 in
after-hours trading.
Over all, the company said sales rose 1% to $4.43 billion in the
fourth quarter, breaking a string of declines and beating analysts'
projections of $4.4 billion despite a challenging backdrop for
retailers.
Meanwhile, sales at stores open for at least a year improved 2%,
as Old Navy and Gap sales offset a 3% decline at Banana
Republic.
The San Francisco retailer has been trying to rebuild its brands
and recapture market share from online competitors and so-called
off-price and fast-fashion retailers under the direction of Chief
Executive Art Peck, a decade-plus Gap veteran who took over the top
executive role in 2015.
On Monday, the retailer, which is slated to report results on
Feb. 23, said it expects to make 54 cents to 55 cents a share in
the fourth quarter, or 50 cents to 51 cents a share on an adjusted
basis, easily topping analysts' projected 43 cents a share, or 45
cents on an adjusted basis.
For the recently ended business year, it expects to make $1.68
to $1.69 a share, or $2.01 to $2.02 on an adjusted basis, compared
with its earlier view of $1.41 to $1.50 a share, or $1.87 to $1.92
on an adjusted basis.
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
February 06, 2017 17:27 ET (22:27 GMT)
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