US fashion giant Gap Inc. on Thursday said its net profits increased 4 percent to USD365 million in the fourth quarter ended on 29 January 2011 from USD352m in the same period last year. Net sales were USD4.36 billion compared with USD4.24b for the fourth quarter of last year.

For the whole fiscal year 2010, net sales increased 3 percent from USD14.2b to USD14.66b. Comparable store sales increased 1 percent compared with a decrease of 3 percent for the prior year.

In fiscal year 2010, the company opened its first flagship stores in Italy and China and expanded its online presence to over 90 countries, including the launch of dedicated sites in Canada, Europe and China. The company’s online and international businesses represented 22 percent of the total fiscal year 2010 revenue, up 2 percent from the previous year.

The US fashion retailer plans to open about 50 company-owned stores internationally in fiscal year 2011, including about 10 to 15 stores in China, 8 to 10 stores in Italy, and 25 outlet stores. The remodelling of its Old Navy stores is going to be continued with the goal of having nearly 400 in the new format by the end of fiscal year 2011. It also aims to open about 75 new franchise stores and continue to grow online, both internationally and domestically.

"During 2010, we executed well on our goal of delivering sales improvement alongside our fourth consecutive year of double-digit earnings per share growth," said Glenn Murphy, chairman and CEO of Gap Inc. "We remain committed to investing in the future and executing with speed and consistency, allowing us to capitalize on the enormous global growth potential ahead of us."