Old Navy Buoys Gap Inc.’s Fourth Quarter Sales

Gap Inc. reported fourth-quarter sales up 3 percent to $4.71 billion; the company calculated net sales up 5 percent on a constant currency basis. However, January sales dropped 1 percent to $888 million.

“We’re pleased to have grown comparable sales 2 percent for the fourth quarter, driven by a strong, double-digit comp at Old Navy,” added CFO Sabrina Simmons.

By division, Gap stores reported Q4 comp sales down 6 percent; Banana Republic up 1 percent and Old Navy up 11 percent.

Gap Inc. raised its fiscal year guidance to a range of $2.86 to $2.87 on its Q4 results and a lower effective tax rate. Full earnings will be reported on February 26.