Somewhat "OT" Gap 4Q tumbles,
Troubled apparel chain posts loss as sales continue to slide in the quarter.
February 26, 2002: 7:01 p.m. ET
By Staff Writer John Chartier
money.cnn.com
NEW YORK (CNN/Money) - Double-digit sales declines and a sliding economy led Gap Inc. to a fourth quarter loss Tuesday in line with Wall Street expectations, well off its year-earlier profit as the troubled apparel chain struggles to regain customers' favor.
The No. 1 U.S. apparel retailer posted a loss of $34 million, or 4 cents a share, down sharply from a profit of $272 million, or 31 cents a share, the year before. Analysts on average anticipated a loss of 4 cents a share, according to earnings tracker First Call.
Fourth-quarter sales declined 11 percent to $4.1 billion from $4.6 billion. The company, which operates Gap stores, Old Navy and Banana Republic, also said sales at stores open at least a year, a key gauge known as same-store sales, are down 17 percent so far for February.
The loss included a $15 million after-tax charge for sub-lease losses at the company's California headquarters and the planned closures of distribution facilities in Kentucky and Holland. |
