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Gap Inc. reported fourth-quarter results that came in slightly below expectations, as its Old Navy and Athleta brands underperformed.
Revenue was $4.2 billion in the period, falling short of the average of analyst estimates compiled by Bloomberg. Old Navy, the company’s biggest brand, and Athleta, its smallest, missed comparable sales estimates, while Gap and Banana Republic beat.
Despite the overall revenue miss, the San Francisco-based retailer reported its eighth quarter in a row of comparable sales growth, an encouraging sign in its turnaround effort. For the current year, the company is forecasting a better profit than expected, and a sales range in line with estimates.
Shares of Gap fell more than 10 percent in postmarket trading. The stock is up more than 6 percent this year as of the close on Thursday.
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Chief executive officer Richard Dickson has been relying on buzzy partnerships and collaborations to bring the company back to relevance. Gap and Old Navy have had an easier time turning around, while Athleta, which sells athletic gear catered to women, has struggled the most due to a competitive market and apparel that hasn’t resonated.
“Athleta sales trends have been disappointing,” Dickson said in an interview. He added that the brand’s new CEO, Maggie Gauger, is working to revive them.
The Middle East region is an immaterial part of the Gap business, Dickson said.
By Lily Meier
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