Global apparel and accessories retailer Gap reported net sales for both the month of January and Q4 were up across brands year on year as the company showed signs of recovery over the previous year’s declines.
“Against a challenging retail backdrop, we’re pleased to report growth in our top-line and comp sales during the critical holiday quarter,” said Art Peck, CEO of Gap Inc., in a press release. “We remain focused on actions that will strengthen our brands and recapture market share.”
Net sales for Jan. 2017 rose 2 percent to $828 million over the $813 million last year. For the fourth quarter of the fiscal year 2016, Gap Inc.’s net sales increased 1 percent to $4.43 billion, up from $4.39 billion last year.
Comparable sales for the month of January were up 1 percent across Gap’s global brands — Old Navy, Gap and Banana Republic — compared with a decline of 8 percent last year. Comparable sales by global brand for Jan. 2017 showed that individual increases were higher but cut back by low comparable sales at Banana Republic.
Old Navy saw 2 percent growth in comparable sales in January, versus last year’s 6 percent decrease in the same period last year. Gap’s comparable sales were also up 3 percent. Banana Republic’s comparable sales were down 4 percent in January, though that rate is still an improvement over the 17 percent decline it saw in January last year.
Gap Inc.’s comparable sales for Q4 2016 were up 2 percent compared to the previous year’s decline of 7 percent. By global brand, Old Navy was up 5 percent, Gap Global was flat and Banana Republic was down 3 percent, though improved from last year’s 14 percent loss.
Gap Inc. plans to release its full Q4 earnings report on Feb. 23. For FY2016, the company now expects its reported diluted earnings per share will be in the range of $1.68–$1.69 on a non-adjusted basis.