Gap Posts Record 4th-Quarter Profit

Clothing retailer Gap Inc. posted record fourth-quarter profit, in line with Wall Street estimates. The San Francisco-based company earned $171.2 million, or 62 cents a share, compared with $154.6 million, or 54 cents a share, for the comparable year-ago period. Sales rose 10% to $1.67 billion from $1.52 billion. Analysts predicted the retailer would earn 62 cents a share, according to First Call. Gap, which owns Gap, Banana Republic and Old Navy stores, said it opened 203 new stores in 1996 and plans to open at least 275 new stores this year. Gap’s earnings per share have grown at a compound annual rate of 21% over the last 10 years. For the year, Gap earned $152.9 million, or $1.60 a share, on sales of $5.28 billion. A year earlier, it earned $354.0 million, or $1.23 a share, on sales of $4.39 billion. Gap stock fell 87.5 cents to close at $33.375 on the NYSE.