Gap Inc. (GPS: chart) posted after the bell Thursday higher preliminary earnings for its fiscal fourth quarter and full year, helped by cost-cutting and strong performance at its Banana Republic chain. The San Francisco-based clothing retailer said the earnings are subject to adjustments based on the outcome of the company’s review of its lease-accounting practices. Gap reported a profit of $370 million, or 40 cents per share, for the 2004 fourth quarter, a 4% growth from $356 million, or 37 cents per share, a year ago. The earnings beat by 3 cents per share the mean analysts’ estimate. For the quarter ended January 29, net sales were $4.9 billion, flat compared to prior-year equivalent, reflecting a tepid holiday season. Same-store sales dipped 3% from a year ago. Sales in the U.S. Gap unit were flat at $1.6 billion, with same-store sales also unchanged from last year. The company’s Old Navy chain reported a 4% drop in same-store sales. Net sales at Banana Republic rose to $702 million from $671 million, while same-store sales slipped 1%. For the year, Gap earned $1.1 billion, or $1.20 per share, on revenue of $16.3 billion. That compares to $1 billion, or $1.09 a share, on revenue of $15.9 billion, in 2003.

For fiscal 2005, Gap projected earnings in the range of $1.41 of $1.45 per share, which is above the average analysts’ view of $1.40 per share.

Gap shares closed Thursday at $21.28, up 11 cents, or 0.52%. The stock soared 4.65% to $22.27 in after-market trade.

Kohl's Corporation (KSS: chart) of Menomonee Falls, Wisconsin, reported after market close Thursday that its quarterly profits increased from last year, due to higher sales and improved margins. The department store operator turned in net earnings of $324.9 million, or 94 cents per share, for its fourth quarter, in contrast to earnings of $244.8 million, or 71 cents per share, for the same period a year earlier. Analysts had called for a profit of 93 cents per share. Quarterly sales rose 14.5% to $4.1 billion from $3.56 billion. Comparable-store sales edged up 1.3%.

The stock dropped 30 cents to $45.90 at market close Thursday. Kohl's shares were up 2.40% to $47.00 in the extended session.

Safeway Inc. (SWY: chart) said Thursday that it swung to a quarterly profit from a deep loss a year ago, when results were hurt by a five-month strike in Southern California. The Pleasanton, California-based food retailer posted fourth-quarter net income of $202.7 million, or 45 cents per share, jumping back from a prior-year net loss of $695.9 million, or $1.57 cents per share, which included impairment charges of $472.6 million. Excluding items, earnings came to 56 cents a share, in the quarter ended January 1, ahead of the average analysts’ forecast of 47 cents a share. Sales for the quarter climbed to $11.39 billion from $11.04 billion.

Safeway shares rose 3.33% to close Thursday at $18.63. The stock gained 20 cents to $18.83 in after-hours trading.

H&R Block, Inc. (HRB: chart) announced Thursday net income of $91.7 million, or 55 cents per share, for its fiscal third quarter, down from $106.7 million, or 59 cents per share, for the 2004 corresponding period. The Kansas City, Missouri-based world's biggest tax preparer cited weakness in its Mortgage Services business as main factor for the results. Despite the weaker profits, the company’s shares rose in after-hours trading, as the earnings beat the mean analysts’ estimate of 48 cents per share, and the company reported a better-than-expected start to the current fourth quarter. Third-quarter revenue rose to $1.03 billion from $977 million. Analysts expected revenue of $997.2 million, on average.

The stock shed 59 cents on Thursday to $47.04. Company shares surged 5.82% to $49.78 in extended trade.

Limited Brands, Inc. (LTD: chart) on Thursday rolled out net earnings of $415.8 million, or 95 cents a share, for its fiscal fourth quarter, up 7.3% from $387.6 million, or 74 cents a share, generated for the 2003 equivalent. The Columbus, Ohio-based retailer attributed the increase to strong post-holiday sales. The earnings were a nickel a share ahead of the consensus analysts’ forecast. The company, whose brands include The Limited, Victoria's Secret, Express, and Bath & Bodyworks, recorded sales of $3.33 billion for the fourth quarter, a 3% growth year-over-year. Same-store sales inched up 2% from last year.

Company shares slipped 1.77% to close Thursday at $23.30. The stock gained 9 cents to $23.39 in after-hours trading.

Staples, Inc. (SPLS: chart) announced before market open Thursday that its quarterly earnings advanced 19% from a year earlier, boosted by higher North American retail and delivery sales. The U.S. leading office supply superstore company reported net income of $251.3 million, or 50 cents per share, for the 2004 fourth quarter, up from $211.9 million, or 42 cents per share, last year. The earnings matched the consensus analysts’ forecast. For the quarter ended January 29, sales increased 13% to $4.08 billion from $3.61 billion, in the 2003 equivalent, beating analysts’ projections for sales of $4.04 billion. Framingham, Massachusetts-based Staples said North American retail sales rose 8% in the quarter, aided by a 4% growth in comparable-store sales. North American delivery sales jumped 19% from a year ago, on strong results in each of its three business units. International sales surged 22%. For all of 2004, the company recorded net income of $708 million, or $1.40 per share, compared with income of $490 million, or 99 cents per share, in 2003. Annual sales climbed 11% to $14.4 billion.

For the first quarter, Staples projected earnings of 29 cents to 30 cents per share. Analysts expect a profit of 30 cents per share, on average.