Gap’s Profit Soars 46%, Penney’s Plunges 41%

Gap Inc.’s profit climbed 46% in the fiscal fourth quarter to $313.9 million, or 53 cents a share, 3 cents higher than forecasts, as shoppers snapped up its khaki pants and sweaters over those of its rivals. Meanwhile, J.C. Penney Co., the nation’s second-largest department store operator, said its earnings plunged 41% to $192 million, or 72 cents a share, a penny less than its already reduced estimates, and its third consecutive quarterly profit decline. San Francisco-based Gap’s revenue soared 40% to $3.03 billion, led by sales at value-priced Old Navy stores. Sales at stores open at least a year jumped 17%. J.C. Penney, which also owns Eckerd drugstores, warned last month that profit would miss estimates. Revenue fell 4.5% to $9.32 billion. Sales at its department stores open at least a year fell 2.8%, even as the retail industry’s holiday shopping season was the strongest in six years. Children’s clothing retailer Gymboree Corp. said its fourth-quarter net income fell 71% to $3.2 million, or 13 cents a share, but topped estimates of 11 cents. Sales jumped 22% to $140.3 million, but same-store sales fell 2%.