Please ensure Javascript is enabled for purposes of website accessibility

Gap Sales Rise Marginally in Q4 and January; Guidance Released

By Eric Volkman – Feb 6, 2014 at 8:34PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Gap's comparable sales advance by only 1%, but the company proffers quarterly guidance above Street numbers.

Gap (GPS 0.68%) is reporting a rather slow start to 2014, as well as a relatively sluggish end to fiscal 2013. The company said its comparable-store sales for the month grew by only 1% on a year-over-year basis. That's down notably from the January 2013 figure, which was 8%.

That same 1% was the increase recorded by the company for its Q4 "comps." As with the monthly rate, it is below the year-ago result, which was 5%.

In terms of net sales, Gap's figure was $899 million for January 2014, down from the $1.13 billion in the same period the previous year. For the quarter, those numbers were $4.58 billion, versus the Q4 2012 tally of $4.73 billion.

In spite of the marginal improvements and the lower sales figures, the firm managed to sound an upbeat note in the press release detailing the figures. It quoted CEO Glenn Murphy as saying that "we're pleased to deliver a strong finish to the year, with another month and quarter of comp sales growth."

Perhaps his optimism stemmed from the wider picture -- the company also released guidance for Q4, projecting EPS of $0.65 to $0.66. This would top the current average analyst estimate of $0.60. 

Meanwhile, for the year ended on February 1, 2014, the company recorded sales of $16.2 billion. This compared favorably to the $15.7 billion it booked the preceding year.

Gap is scheduled to release a full set of Q4 results on February 27.

Eric Volkman has no position in Gap. Nor does The Motley Fool. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Gap Stock Quote
Gap
GPS
$14.84 (0.68%) $0.10

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
360%
 
S&P 500 Returns
118%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 11/26/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.