Gap surpasses Street 4Q forecasts on rising Old Navy sales

Gap Inc. reported stronger-than-expected fourth-quarter results on Thursday as sales continued to improve for Old Navy, its largest brand.

Gap reported net income of USD319 million, or 75 cents per share, on USD4.71 billion in revenue. A year earlier the retailer earned USD307 million, or 68 cents per share, on USD4.58 billion in revenue.

The company said sales at Old Navy stores open at least a year grew 5 percent for the year, including growth of 11 percent in the fourth quarter. Sales at locations open at least a year are considered important measurements of retailer health because they strip out results from stores that recently opened or closed.