SAN FRANCISCO (AP) -- Gap Inc. said Thursday that revenue at stores open at least a year fell 4 percent in January.
Though that was an unwelcome change from a 3 percent increase a year ago, the news wasn't all bad. It was better than the 4.9 percent decline that analysts had predicted. And at Gap Inc.'s most high-end unit, Banana Republic North America, revenue rose 6 percent.
That sent company shares up 8 percent in premarket trading to $21.10. Shares are nearing the 52-week-high of $23.73.
Revenue at stores open at least a year is a key indicator of a company's health because it excludes the impact of recently opened or closed stores. Net revenue, which does include that impact, fell just 1 percent to $833 million.
CEO Glenn Murphy said that January was dominated by clearance sales, which can help rid a company of unwanted inventory but also can eat into profit margins. Murphy said he was "pleased that we successfully cleared holiday inventory."
Gap also said it expects per-share earnings for the fourth quarter, which covers roughly November through January, to be 41 cents or 42 cents, well above the 35 cents predicted by analysts polled by FactSet.
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