Gap Inc. reported strong fourth-quarter fiscal 2024 results, with diluted earnings per share of $0.54, significantly beating analyst estimates of $0.36. Net sales for the quarter were $4.15 billion, exceeding Wall Street expectations of $4.07 billion, despite a 3% year-over-year decline attributed to an extra selling week in the prior year.
Comparable sales for the fourth quarter grew 3%, surpassing expectations of 1% growth. For the full fiscal year 2024, net sales increased 1% and comparable sales were up 3%, with all four brands gaining market share. The company achieved an operating income of $1.1 billion, representing over 80% growth compared to the prior year, and its gross margin reached 41.3%, the highest in over 20 years.
Looking ahead to fiscal year 2025, Gap Inc. provided an outlook expecting net sales to grow between 1% and 2%, and underlying operating income to increase by 8% to 10%. The company also plans to close approximately 35 stores, primarily Banana Republic locations, as part of its ongoing optimization strategy.
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