Gap raises 2014 net income estimate based on 4th-quarter sales and lower taxes

MarketsAssociated Press

Gap is raising its annual profit guidance based on its fourth-quarter sales and reduced taxes.

The retailer says it expects to report a profit of $2.86 to $2.87 per share for the year, up from its previous estimate of $2.73 to $2.78 per share.

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FactSet says analysts expected $2.74 per share on average.

Gap Inc. says its revenue fell in January as sales for its namesake brand slumped, but its Banana Republic and Old Navy brands reported improved results. The San Francisco company says its total fourth-quarter sales grew 3 percent.

Gap says an extension of tax benefits also helped its results.