Gap Inc. swung to a loss in its fourth quarter, but it still managed to beat Street earnings and sales expectations.
Gap, the largest specialty apparel company in the US, reported a loss of $16M, or $0.4 cents per share, for the quarter ended 29 January, compared with net income of $234M, or $0.61 a share in the year-ago period. Earnings adjusted for charges related to strategic changes in its European business, came to a loss of $0.02 per share, less than the $0.14 loss analysts had been expecting.
Net sales increased two per cent year-over-year to $4.53bn, topping estimates for $4.49bn. Sales were down three per cent compared to the same period in 2019, with the company citing store closures. Same-store sales rose three per cent year-over-year. On a two-year basis, same-store sales were also up three per cent.
Gap said it expects to open about 30 to 40 stores each for Old Navy and Athleta in fiscal year 2022. In addition, as part of its previously announced 350 store closure plan, the company expects to close about 50 to 60 Gap and Banana Republic stores in North America during the year.
