Gap (NYSE:GAP) surged over 14% intra-day today after delivering fourth-quarter earnings and revenue that exceeded expectations. The apparel retailer also boosted investor confidence by announcing a 10% increase in its quarterly dividend.
For the quarter, Gap reported adjusted earnings per share (EPS) of $0.54, significantly outpacing analyst estimates of $0.36. Revenue reached $4.1 billion, slightly surpassing the consensus forecast of $4.07 billion. Comparable sales increased 3% year-over-year, reinforcing the company’s steady growth.
CEO Richard Dickson highlighted that Gap not only outperformed financial expectations but also gained market share for the eighth consecutive quarter.
For the full year 2024, Gap posted net sales of $15.1 billion, marking a 1% increase from the prior year. Comparable sales also rose 3%, while operating income surged over 80% year-over-year to $1.1 billion.
Looking ahead, the company projects net sales growth of 1% to 2% for fiscal 2025, with operating income expected to rise between 8% and 10%. For the first quarter of 2025, Gap anticipates flat to slightly positive sales growth compared to Q1 2024.