Gap’s sales increased 9% to $4.8 billion in the quarter with US contributing 80% to sales, helped by strong holiday sales and improved margins. On a per share basis, adjusted earnings came in at $0.63, up 23.5% compared to the prior year period. Same-store sales growth was 5% for the quarter and 3% for the fiscal year 2017.
The retailer reported GAAP earnings of $0.52 per share compared to $0.55 in the fourth quarter of 2016. Reduction in earnings was mainly due to $34 million impact relating to recent income tax reforms. Gap paid $0.23 per share as dividend to shareholders in the quarter.
Fiscal 2018 Outlook
The company forecasts its reported EPS to be between $2.55 and $2.70. Same-store sales is expected to be flat to up for the year. On the capex front, Gap intends to spend $800 million to bolster its physical and digital experience to users. On the store front, 25 stores are expected to be opened by the company in fiscal 2018.