Gap Inc. posted a 45 percent rise in profit during its holiday quarter, helped by fewer discounts and improved sales in all divisions, and gave a 2010 profit forecast that beat Wall Street’s estimates.
The operator of Gap, Banana Republic and Old Navy apparel stores also raised its fiscal 2010 dividend 18 percent to 40 cents and authorized an extra $1 billion in share repurchases. Shares in the company rose 1.2 percent after-hours.
After a years-long sales slump, Gap has turned around its sales through better merchandising, more targeted fashion and marketing, while beefing up its profit margins.
It recently logged a 5 percent increase in January same-store sales, with gains in all chains.
Net income in Gap’s fourth quarter ended Jan. 30 rose to $352 million or 51 cents per share up from $243 million, or 34 cents per share, in the fourth quarter of last year.
Gap shares closed trading at $20.39.