Gap Inc. Swings to Profit in Q4, Old Navy Sees Growth

The retailer reports a net income of $185 million and a sales increase at Old Navy, signaling a positive shift amid efforts to rejuvenate its brands.

Gap Inc. reports a significant turnaround with net income of $185 million in Q4, compared to a loss of $273 million in the same quarter last year.
Old Navy, Gap's largest banner, saw a 6% increase in sales, marking its first growth in over a year.
Gap's overall gross margin improved by 5.3 percentage points to 38.9%, attributed to fewer markdowns and lower input costs.
The company expects sales to be roughly flat in the current quarter and for the full year, amidst an uncertain consumer environment.
Gap Inc. is focusing on reinvigorating its brands, with efforts including hiring fashion designer Zac Posen as Old Navy's chief creative officer.