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Gap Reports Huge Earnings

NEW YORK -- Gap Inc. is reporting a 61 percent increase in profits for the fourth quarter, capping a strong year that saw the company's turnaround take hold.

The San Francisco-based company, which operates stores under its namesake, Banana Republic and Old Navy brands, said late Thursday that it earned $351 million, or 73 cents per share, in the quarter ended Feb. 2. Revenue rose 10 percent to $4.73 billion in the period.

Analysts had expected 71 cents per share on revenue of $4.7 billion.

Revenue at stores opened at least a year rose 5 percent. The measure is considered a key indicator of a retailer's health.

The company expects to earn $2.52 to $2.60 this year, below the $2.59 average Street estimate. Gap cites the weakening yen.

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