• Net income grew 61% to reach $351m
  • Sales increased 10.5% to $4.73bn
  • Full-year net income was up 32% to $1.1bn
  • Sales were up 8.2% to $15.7bn
Fourth-quarter net income jumped 61% to reach $351m

Fourth-quarter net income jumped 61% to reach $351m

Speciality clothing retailer Gap Inc has capped off a strong year with a sharp increase in net profits as its turnaround efforts take hold.

The company recorded a 61% increase in net profit to reach $351m over the quarter ended 2 February, against $218m in the prior year period. Sales grew 10.5% to $4.73bn, rising 5% on a comparable store basis.

The company recorded improvements in all of its divisions, with Gap North America recording a 4% comparable sales gain, Banana Republic North America comparable sales increasing 4%, and Old Navy reporting 8% comparable growth. The international division recorded a 2% decline, an improvement on the 8% drop reported last year.

"Our results in 2012 were stellar in many ways, and I'm very pleased with how well our product resonated with customers," said Glenn Murphy, chairman and chief executive officer of Gap Inc.

"We enter 2013 focused on leveraging our global brands to gain more market share and continuing to increase shareholder value."

For the full year, the company said net income increased 32% to $1.1bn, from US$833m in the prior year. Sales grew 8.2% over the year to $15.7bn, from $14.5bn in the earlier year period. Comparable sales increased 5% over the year.

All brands recorded improved comparable sales over the year, with Gap North America posting a 6% gain, Banana Republic North America growing 5%, and Old Navy increasing 6%. The group's international division saw a 3% decline, but this was an improvement on the 7% drop last year.

In 2013, the company expects diluted earnings per share to increase 8-12% on 2012 to reach $2.52 to $2.60.