Gap Inc., with Old Navy continuing to outperform other divisions in the corporation, reported that its net income rose 3.9 percent to $319 million in the fourth quarter ended Jan. 31, from $307 million in the year ago period.
Earnings per share increased 10 percent to 75 cents per share on a diluted basis, from 68 cents the fourth quarter a year ago.
Net sales were up 3 percent to $4.71 billion, compared with $4.58 billion in the year ago period. On a constant currency basis, net sales increased 5 percent. Comparable sales rose 2 percent.
Net income for fiscal year 2014 was $1.26 billion, or $2.87 per share on a diluted basis, compared with $1.28 billion, or $2.74 per share on a diluted basis for the 2013 fiscal year.
Comparable sales were flat.
For 2014, Gap Global’s comps were down 5 percent; Banana Republic was flat, and Old Navy Global was up 5 percent.
“Looking ahead at 2015, we will continue executing our global growth strategy, bringing new digital capabilities to life and making the shifts necessary to consistently deliver the brand-right, emotional product that our customers expect from all of our brands,” said Art Peck, Gap’s chief executive officer. “I’ve moved quickly to assemble a talented team of leaders who share my sense of urgency and, together, we’re focused and ready for the year ahead.”
The company expects diluted earnings per share to be in the range of $2.75 to $2.80 for 2015, which factors in the estimated negative impact of about 6 percentage points, or approximately $0.16, due to foreign currency fluctuations at current exchange rates; and the estimated negative impact of about 4 points, or approximately $0.13, due to delayed merchandise receipts at West Coast ports.