Gap optimistic about the future
The company forecast a return to sales growth this year
Stocks impacted: Gap Inc (GPS)
Gap said its fourth-quarter revenue fell to $4.42 billion from $4.67 billion in the year-ago quarter. However, the company swung to a profit, posting fourth-quarter net income of $234 million, or 61 cents a share, compared with a loss of $184 million, or 49 cents a share, in the year-ago period. The San Francisco-based company forecasts a return to sales growth this year, as it expects sales at its Athleta brand to double in the next two years and the roll-out of vaccines to drive traffic at its stores. According to the firm, Athleta's sales surged 29% to more than a billion dollars in the fourth quarter and that is expected to reach $2 billion by 2023. Gap stocks finished 1.44% lower but rose 4.4% in extended trading after the quarterly report and upbeat forecasts.
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