Gap Inc. Sees Fourth-quarter, Full-year Earnings That Beat Estimates

By Markets MarketWatch Pulse

Gap Inc. said same-store sales for January were down 8% with sales for the four-weeks ending Jan. 30 totaling $813 million, down from $888 million in sales for the same period last year. Same-store sales at the global Gap brand were down 6% for January. Banana Republic's same-store sales were down 17%. And same-store sales at Old Navy were down 6%. Sales for fiscal fourth quarter 2015 totaled $4.4 billion, down from $4.7 billion for the same period last year. The FactSet consensus was $4.5 billion. Same-store sales for the fourth quarter were down 7%. The FactSet estimate was for a 5.1% drop. Same-store sales at the global Gap brand for the fourth quarter were down 3%. Banana Republic's same-store sales for the quarter were down 14%. And Old Navy's same-store sales were down 8% for the quarter. Gap Inc. sees fiscal fourth-quarter adjusted earnings per share between 56 cents and 57 cents, beating the FactSet consensus of 53 cents. And full-year adjusted earnings per share are expected in the range of $2.41 and $2.42, beating the FactSet estimate of $2.37. Gap shares are up 0.7% in postmarket trading, but down 42.6% for the past 12 months. The S&P 500 is down 9.8% for the past year.

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