The Gap, Inc. (NYSE: GPS) reported its fiscal fourth-quarter financial results after the markets closed on Thursday. The company had $0.57 in earnings per share (EPS) on $4.39 billion in revenue versus Thomson Reuters consensus estimates that called for $0.57 in EPS on $4.46 billion in revenue. The same period from the previous year had $0.75 in EPS on $4.71 billion in revenue.

In terms of fiscal 2016 guidance, the company expects to have EPS in the range of $2.20 to $2.25, and an operating margin of 9.5%. There are consensus estimates for the full year that call for $2.42 in EPS on $15.86 billion in revenue.

Gap is keeping an annualized dividend of about $0.92 per share, but the company authorized a new $1 billion share buyback. It returned roughly $1.4 billion through buybacks and dividends combined to shareholders over the last year.

Free cash flow for the fourth quarter totaled $870 million. Also on the books, the company ended fiscal year 2015 with $1.4 billion in cash and cash equivalents compared to $1.5 billion at the end of the previous year.

Comparable sales fell 7% in this quarter compared to an increase of 2% in the fourth quarter from last year. In terms of its segment comparable sales results the company had:

• Gap Global had negative 6% comparable sales versus negative 5% in the previous year.
• Banana Republic Global had negative 10% comparable sales.
• Old Navy Global comparable sales were flat compared to a positive 5% from last year.

Art Peck, CEO of Gap, commented on earnings:

With a year of transition behind us, I’m confident that we have the right strategies in place to fuel our long-term growth. We made significant progress in 2015 transforming our product operating model, enabling us to be more responsive to trends and market conditions, and consistently deliver on-brand product collections.

Peck continued:

Our brands are strengthening their connections with customers through digital, and especially mobile, enhancements that create richer experiences whether shopping online or in stores, or any combination of channels.

Shares of Gap closed Thursday up 1.2% at $27.61, with a consensus analyst price target of $26.41 and a 52-week trading range of $21.57 to $43.90. Following the release of the earnings report, the stock was down over 3% at $26.75 in the after-hours trading session.

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