Gap Q4 Profit Tops Estimate

(RTTNews) - Gap Inc. (GPS) reported net income for the fourth quarter of $319 million or $0.75 per share, compared to $307 million or $0.68 per share for the year-ago quarter.

Net sales for the fourth quarter rose 4% to to $4.71 billion from $4.58 billion a year earlier. Fourth quarter same-sales increased 2%.

Analysst polled by Thomson Reuters expected the company to earn $0.74 per share on revenue of $4.71 billion for the fourth quarter.

Looking forward, the company forecasts fiscal year 2015 earnings to be in the range of $2.75 to $2.80 per share. Analysts currently expect the company to earn $3.01 per share for the fiscal year 2015.

Separately, Gap said that its Board of Directors has approved a new $1 billion share repurchase authorization for the company's common stock. The new $1 billion repurchase authorization follows the company's previous $500 million share repurchase authorization, which the company announced on October 16, 2014.

Additionally, the company said that its Board of Directors plans to increase the company's annual dividend to $0.92 per share in fiscal year 2015, compared to the company's current annual dividend of $0.88 per share.

Gap's Board also authorized the first quarter fiscal year 2015 dividend of $0.23 per share, payable on or after April 29 to shareholders of record on April 8.