Gap Inc. reported a stellar fiscal fourth quarter, surpassing Wall Street’s expectations. The company’s shares surged 17% in extended trading. For the quarter ending February 1, Gap’s net income was $206 million, or 54 cents per share, up from $185 million, or 49 cents per share, the previous year. Despite a 3% drop in sales to $4.15 billion, comparable sales grew by 3%, exceeding the anticipated 1% increase. The company’s gross margin reached 41.3%, the highest in over 20 years. Old Navy, Gap’s largest brand, saw sales of $2.2 billion with a 3% rise in comparable sales, while the Gap brand itself experienced a 7% increase. Banana Republic’s sales grew by 4%, contrary to expectations of a decline. However, Athleta’s sales fell by 2%. Looking ahead, Gap expects sales to grow between 1% and 2% for the year, with the current quarter’s sales projected to be “flat to up slightly.”
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