Gap (GPS) reports Q4 revenue $4.7B, consensus $4.55B. The company's fourth quarter fiscal year 2019 comparable sales were down 1% compared with negative 1% last year. Comparable sales by brand for the fourth quarter were as follows: Old Navy Global: flat versus flat last year; Gap Global: negative 5% versus negative 5% last year; Banana Republic Global: flat versus negative 1% last year; Athleta: positive 2% versus positive 7% last year. Included in the fourth quarter reported results was an impairment charge of $296 million related to the store assets and operating lease assets of the company's flagship stores.

As a result of the company's specialty fleet rationalization efforts, the company reassessed its operating strategy for flagships, given their declining importance as marketing and brand awareness tools. Specifically, in the fourth quarter, the company began to explore options to exit or sublease certain flagship locations, including the Gap and Old Navy Times Square locations. The majority of the impairment charge related to the operating lease assets of the Times Square locations, due to the negative contribution of the individual stores, length of the leases, and the significant decline in the market rents. There were also significant costs incurred in the quarter related to the recently cancelled Old Navy separation, including the disposal of capital assets with no alternative future use and certain obligations under noncancelable contracts. Fourth quarter separation-related charges were $189 million.