Skip to main content
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Gap Holiday Sales Up, Offers Rosier Profit Outlook

Waris Ahluwalia and Quentin Jones for Gap Holiday 2013 | Source: Gap
By
  • Associated Press

NEW YORK, United States — Gap Inc. said late Thursday that it expects to deliver fourth-quarter earnings results at the high end of its forecast that was issued in November.

Shares rose in after-hours trading when the news was announced.

The announcement comes as the San Francisco-based clothing chain said that it posted a 1 percent increase in revenue at stores opened at least a year for the November and December period compared with a year ago. For December, that figure was unchanged from a year ago. Analysts had expected an increase of 1.5 percent for last month, according to Thomson Reuters.

"We delivered solid overall performance across our global brands this holiday season, on top of last year's strong results," said Glenn Murphy, chairman and CEO of Gap Inc., in a statement.

ADVERTISEMENT

By division, Gap's namesake stores posted a 1 percent increase in December in revenue at stores opened at least a year, while Banana Republic's saw that metric unchanged. Old Navy had a 2 percent drop in the measure.

This figure is a key indicator of a retailer's health because it excludes results from stores recently opened or closed.

Gap said that net sales for the nine-week period ended Jan. 5 were $3.68 billion, up 2 percent from $3.59 billion a year ago.

Gap reaffirmed its full-year earnings-per-share guidance range of $2.57 to $2.65 per share. Analysts expected $2.68 per share. But said it was "comfortable" that it would achieve the high end of that forecast after completing a majority of the holiday season.

Gap's shares rose 1.9 percent, or 73 cents to $40.15 in after-hours trading on Thursday, after closing up 22 cents to $39.42 in regular trading.

Copyright (2014) Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from News & Analysis
Fashion News, Analysis and Business Intelligence from the leading digital authority on the global fashion industry.
view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
BoF Professional - How to Turn Data Into Meaningful Customer Connections
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.
BoF Professional - How to Turn Data Into Meaningful Customer Connections