Investing.com -- Gap Inc (NYSE:GAP) reported better-than-expected fourth quarter earnings and revenue, sending shares soaring 12.4% in after-hours trading. The apparel retailer also announced a 10% increase to its quarterly dividend.
Gap posted adjusted earnings per share of $0.54 for Q4, surpassing analyst estimates of $0.36. Revenue came in at $4.1 billion, slightly above the consensus forecast of $4.07 billion. Comparable sales increased 3% YoY in the quarter.
"We ended the year delivering another successful quarter, exceeding financial expectations and gaining market share for the 8th consecutive quarter," said President and CEO Richard Dickson.
For the full fiscal year 2024, Gap reported net sales of $15.1 billion, up 1% compared to the previous year. Comparable sales rose 3% for the year. The company generated operating income of $1.1 billion, an increase of over 80% versus fiscal 2023.
Gap provided guidance for fiscal 2025, projecting net sales growth of 1% to 2% and operating income growth of 8% to 10%. For Q1 2025, the company expects net sales to be flat to up slightly compared to Q1 2024.
The retailer's board approved a Q1 fiscal 2025 dividend of $0.165 per share, representing a 10% increase from the previous quarter's dividend.
Gap ended the year with $2.6 billion in cash and equivalents, up 38% from the prior year. The company repurchased 3 million shares for approximately $75 million during Q4.