Gap Inc. says both its sales and profits fell in the fourth quarter, and that it would close 100 stores. Net earnings fell to $243 million from $265 million a year ago, while sales sank $4.1 billion,
from $4.7 billion in the fourth quarter last year.
Comparable-store sales dropped 14%, led by a 17% decline at its Old Navy brand, a 15% drop at Banana Republic, and a 13% decline
at its Gap stores. (And most of the closures, it says, will be among Gap stores.)
Still, the San Francisco-based company's results beat expectations, as the company trimmed costs. Earlier this
week, it broke a new campaign, "Supermodelquins," for Old Navy, returning to the chain's "fashion-at-a-value" roots.--Sarah Mahoney