Gap Inc. had a tough holiday season with disappointing sales seen across its big brands.
Comparable sales for the fourth quarter fell 7 percent, versus a 2 percent gain a year earlier. Net sales totaled $4.39 billion and marked a decline from $4.71 billion in the year-ago period. On a constant currency basis, net sales decreased 5 percent.
But the retailer stood by its bottom-line forecast and investors pushed the stock up 2.8 percent to $24.65 in after-hours trading Monday.
By division, fourth-quarter comparable sales at Gap Global declined 3 percent after a 6 percent drop the year before. Banana Republic Global posted a 14 percent decline comparable sales, versus a gain of 1 percent the year before, and Old Navy Global slid 8 percent after an 11 percent gain a year earlier.
For the four-week period ended Jan. 30, 2016, net sales fell to $813 million, down from $888 million a year earlier. Comparable sales were off 8 percent for the month, with Gap Global and Old Navy Global both down 6 percent while Banana Republic Global dropped 17 percent.
Despite the revenue declines, the company narrowed its 2015 adjusted diluted earnings per share guidance to $2.41 to $2.42, which is at the high end of the previously issued guidance of $2.38 to $2.42 for the full year.
That outlook excludes the one-time negative impact about 20 cents a diluted share that were attributed to strategic actions in 2015. The company said last year it would shutter 175 North American stores.
Sabrina Simmons, chief financial officer of Gap Inc., said the company was “pleased” to be able to guide to the high end of previously forecasted 2015 full-year earnings. For the fourth quarter of 2015, the company expects adjusted diluted earnings per share to be in the range of 56 cents to 57 cents.