Gap Inc (NYSE: GAP) shares are trading higher in Thursday's after-hours session on the heels of the company's fourth-quarter results. Here's a rundown of the report.
What Happened: Gap said fourth-quarter revenue increased 1% year-over-year to $4.30 billion, which beat the consensus estimate of $4.22 billion, according to Benzinga Pro. The company reported quarterly earnings of 49 cents per share, significantly improved from a loss of 75 cents in the prior year's quarter. The company's bottom-line results came in ahead of estimates of 23 cents per share.
Comparable sales were flat on a year-over-year basis. Store sales were up 4%, while online sales fell 2% year-over-year. Old Navy sales were up 6%, Gap sales were down 5%, Banana Republic sales were down 5% and Athleta sales were down 4% year-over-year.
Gap's board approved a first-quarter dividend of 15 cents per share. The company ended the quarter with $1.9 billion in cash and cash equivalents, up 54% on a year-over-year basis.
"The fourth quarter exceeded expectations on several key metrics along with market share gains, reflecting improved trends at Old Navy and Gap and strong continued progress on margins and cash flow," said Richard Dickson, president and CEO of Gap.
"The financial and operational rigor we have worked to develop, and will continue to pursue, is enabling us to focus on reinvigorating our brands with the goal of generating profitable growth and value for shareholders."
Outlook: Gap expects both first-quarter and full-year 2024 net sales to be roughly flat on a year-over-year basis. Gross margin is expected to expand at least 100 basis points in the first quarter. The company also guided for at least 50 basis points of margin expansion for the full year of 2024.
Management will hold a conference call to discuss these results at 5 p.m. ET.
GPS Price Action: Gap shares were up 8.43% after hours at $20.95 at the time of publication, according to Benzinga Pro.