Gap reported net income of $218 million ($0.44 Diluted EPS) for the fourth quarter ended Jan 28, a 40% decline from a year ago. Net sales decreased 1.9% to $4.283 billion, while same-store sales fell 4% compared to a 1% gain last year. Comps by segment were: Gap North America -3% vs flat, Banana Republic NA flat vs +2%, Old Navy NA -6% vs +2%, and International -8% vs +1%, while online sales grew 21% to $489 million during the quarter. For the full fiscal year 2011, total sales decreased 0.8% to $14.549 billion and comparable store sales fell 4%, while net income declined 31% to $833 million and diluted EPS decreased 17% to $1.56. “In spite of 2011 earnings being below last year, we’re pleased with the progress we made against our long-term strategic plan, including growing our online business and expanding internationally,” said Glenn Murphy, chairman and chief executive officer of Gap Inc. “There’s no doubt that improving our performance, especially in our base businesses, is the top priority in 2012, and we’re confident this is the right time to invest wisely to win back customers.” The company expects diluted earnings per share to be in the range of $1.75 – $1.80 for fiscal year 2012.
