Gap Sees Q4 EPS Above Street; Lifts FY Guidance

(RTTNews) - Apparel retailer Gap Inc (GPS) on Monday said it expects fourth-quarter earnings to surpass Wall Street estimates, and reported quarterly sales in line with analysts.

The company also raised its full year earnings guidance, citing the strong fourth quarter results as well as a lower effective tax rate.

Gap expects fourth-quarter earnings of $0.73 to $0.74 per share. Analysts polled by Thomson Reuters expect the company to report earnings of $0.64 per share. Analysts' estimates typically exclude one-time items.

Also Gap reported fourth-quarter sales $4.71 billion, up 3 percent from $4.58 billion last year. Analysts expected sales of $4.71 billion.

Gap's comparable sales for the fourth quarter were up 2 percent. Among brands, Gap Global was a negative 9 percent, while Banana Republic was up 2 percent and Old Navy up 3 percent.

The company noted that sales for the four-week period ended January 2015 slid to $888 million from $899 million in the prior year.

For the full year 2014, Gap projects earnings of $2.86 to $2.87 per share, up from prior guidance of $2.73 to $2.78 per share. Analysts expect the company to report earnings of $2.76 per share.

Gap will release its fourth quarter earnings on February 26.