Gap (NYSE: GPS) today reported that net sales for the four-week period ended January 28, 2017 increased 2 percent to $828 million compared with net sales of $813 million for the four-week period ended January 30, 2016. For the fourth quarter of fiscal year 2016, Gap Inc.’s net sales increased 1 percent to $4.43 billion compared with $4.39 billion for the fourth quarter last year.

“Against a challenging retail backdrop, we’re pleased to report growth in our top-line and comp sales during the critical holiday quarter,” said Art Peck, chief executive officer, Gap Inc. “We remain focused on actions that will strengthen our brands and recapture market share.”

January Comparable Sales Results

Gap Inc.’s comparable sales for January 2017 were up 1 percent compared with a decline of 8 percent last year. Comparable sales by global brand for January 2017 were as follows:

• Old Navy Global: positive 2 percent versus negative 6 percent last year
• Gap Global: positive 3 percent versus negative 6 percent last year
• Banana Republic Global: negative 4 percent versus negative 17 percent last year

Fourth Quarter Comparable Sales Results

Gap Inc.’s comparable sales for the fourth quarter of fiscal year 2016 were up 2 percent compared with a decline of 7 percent last year. Comparable sales by global brand for the fourth quarter were as follows:

• Old Navy Global: positive 5 percent versus negative 8 percent last year
• Gap Global: flat versus negative 3 percent last year
• Banana Republic Global: negative 3 percent versus negative 14 percent last year

Full-Year and Fourth Quarter Guidance

For fiscal year 2016, the company now expects its reported diluted earnings per share to be in the range of $1.68 to $1.69. On an adjusted basis, Gap Inc. now expects its full-year 2016 adjusted earnings per share to be in the range of $2.01 to $2.02, excluding the following impacts:

• Costs associated with the company’s previously announced store closure and streamlining initiatives of about $0.41, which includes the impact from a higher tax rate;
• A non-cash goodwill impairment charge of about $0.18 related to Intermix;
• A gain of about $0.11 from insurance proceeds related to a fire which occurred in a building on the company’s Fishkill distribution center campus;
• A non-recurring tax benefit of about $0.15.

Please see the reconciliation of adjusted diluted earnings per share, a non-GAAP financial measure, in the table at the end of this press release.

The company noted that its expected fiscal year 2016 adjusted earnings per share range includes a fourth quarter benefit of about $0.03 from a lower effective tax rate versus last year’s rate, primarily due to changes in the company’s geographical mix of earnings. As a result, Gap Inc. now expects a full-year reported effective tax rate of about 40 percent, or about 39 percent excluding restructuring costs and other one-time items.

For the fourth quarter of fiscal year 2016, the company expects its reported diluted earnings per share to be in the range of $0.54 to $0.55, or about $0.50 to $0.51 on an adjusted basis. Please see the reconciliation of adjusted diluted earnings per share, a non-GAAP financial measure, in the table at the end of this press release.

(Street sees Q4 EPS of 0.45 and FY EPS of $1.96)

Additional insight into Gap Inc.’s sales performance is available by calling 1-800-GAP-NEWS (1-800-427-6397). International callers may call 706-902-4949. The recording will be available at approximately 1:15 p.m. Pacific Time on February 6, 2017 and available for replay until 1:15 p.m. Pacific Time on February 10, 2017.

Fourth Quarter Earnings

Gap Inc. will release its fourth quarter earnings results via press release on February 23, 2017 at 1:15 p.m. Pacific Time. In addition, the company will host a summary of Gap Inc.’s fourth quarter results during a live conference call and webcast on February 23, 2017 from approximately 2:00 p.m. to 3:00 p.m. Pacific Time. The conference call can be accessed by calling 1-855-5000-GPS or 1-855-500-0477 (participant passcode: 3648818). International callers may dial 913-643-0954. The webcast can be accessed at www.gapinc.com.