- Prachi Singh |
Gap Inc. has said that on a reported basis, the company’s diluted earnings per share were 0.52 dollar for the fourth quarter and 2.14 dollars for fiscal year 2017, which includes 34 million dollars of provisional net tax impacts. For fiscal year 2017, the company’s comparable sales were up 3 percent compared with a decline of 2 percent last year. Fourth quarter net sales increased 8 percent to 4.8 billion dollars and fiscal year net sales were 15.9 billion dollars. For fiscal year 2018, the company expects diluted earnings per share to be in the range of 2.55 dollars to 2.70 dollars and comparable sales to be flat to up slightly.
“Our strong positive comp and margin expansion during the critical holiday quarter affirms our balanced growth strategy,” said Art Peck, President and CEO, Gap in a statement, adding, “Our outlook for 2018 demonstrates confidence in our strategy and a meaningful step up in earnings capacity for the company.”
Review of Gap’s Q4 and full year results
The company added that excluding the net provisional impacts related to tax reform and the second quarter benefit from insurance proceeds related to the Fishkill fire of 64 million dollars, the company’s adjusted diluted earnings per share were 0.61 dollar for the fourth quarter and 2.13 dollars for fiscal year 2017, inclusive of the 53rd week, compared with $0.51 dollar and 2.02 dollars, in the last year’s fourth quarter and full year respectively. The company noted that foreign currency fluctuations negatively impacted adjusted earnings per share by an estimated 0.08 dollar or about 4 percentage points on an adjusted basis.
Fourth quarter comparable sales were up 5 percent compared with an increase of 2 percent last year, while comparable sales at Old Navy Global were positive 9 percent versus positive 5 percent last year, at Gap Global flat versus flat last year and at Banana Republic Global: positive 1 percent versus negative 3 percent last year.
Full year comparable sales at Old Navy Global were positive 6 percent versus positive 1 percent last year, at Gap Global: negative 1 percent versus negative 3 percent last year and at Banana Republic Global: negative 2 percent versus negative 7 percent last year.The company ended fiscal year with 3,594 store locations in 45 countries, of which 3,165 were company-operated. In fiscal year 2018, the company expects to open about 25 company-operated stores, net of closures and repositions. In line with its strategy, the company expects store openings to be focused on Athleta and Old Navy locations, with closures weighted toward Gap brand and Banana Republic.