Gap, the parent company of Old Navy, Banana Republic, and Athleta, generated $15.1 billion in sales for the year ending February.
President and CEO Richard Dickson said the company has exceeded financial expectations for the eighth consecutive quarter.
“For the full year, we delivered positive comps in all four quarters, achieved one of the highest gross margins in the last 20 years, and meaningfully increased operating margin versus the prior year,” he continued.
In the fourth quarter, the company reported net sales of $4.1 billion, down 3 per cent year-over-year. Brick-and-mortar store sales declined 4 per cent, while online sales fell 2 per cent. Gross margin was at 38.9 per cent while operating income reached $259 million.
“We continue to drive toward becoming a high-performing house of iconic American brands that deliver long-term value for our shareholders,” added the CEO.
Brand results breakdown
Old Navy
- Q4 net sales: $2.2 billion (down 3 per cent).
- Q4 comparable sales: up 3 per cent.
- FY net sales: $8.4 billion (up 2 per cent).
- FY comparable sales: up 3 per cent.
- Strength in activewear and denim.
Gap
- Q4 net sales: $980 million (down 3 per cent).
- Q4 comparable sales: up 7 per cent.
- FY net sales: $3.3 billion (flat YoY).
- FY comparable sales: up 4 per cent.
- Brand says its reinvigoration efforts are driving relevance and revenue growth.
Banana Republic
- Q4 net sales: $545 million (down 4 per cent).
- Q4 comparable sales: up 4 per cent.
- FY net sales: $1.9 billion (flat YoY).
- FY comparable sales: up 1 per cent.
- Women’s category saw notable improvement, while men’s remains strong.
Athleta
- Q4 net sales: $396 million (down 5 per cent).
- Q4 comparable sales: down 2 per cent.
- FY net sales: $1.4 billion (down 1 per cent).
- FY comparable sales: flat.
- Market share is stable, but the brand is working to regain momentum.
