Gap Q3 FY'13 EPS increases 14%

The company reaffirmed its estimate for full year 2013 diluted earnings per share to be in the range of $2.57 to $2.65.

Highlights:

- Third Quarter Earnings Per Share of $0.72, a 14 Percent Increase over Last Year

- Net Sales Up 3 Percent in the Third Quarter; Up 5 Percent on a Constant Currency Basis

- Comparable Sales Up 1 Percent for the Third Quarter Versus a 6 Percent Increase Last Year

- Reaffirmed Full Year Earnings Per Share Guidance of $2.57 to $2.65

- Distributed $882 Million to Shareholders in the Quarter through Share Repurchase and

Dividends; Announced New $1 Billion Share Repurchase Authorization

Net sales for the third quarter, which ended November 2, 2013, increased 3 percent to $3.98 billion compared with $3.86 billion for the third quarter last year. Net sales increased 5 percent on a constant currency basis.

In calculating net sales growth on a constant currency basis, current year foreign exchange rates are applied to both current year and prior year net sales. This is done to enhance the visibility of underlying business trends, excluding the impact of foreign currency exchange rate fluctuations.

“This quarter marks our seventh consecutive quarter of positive comp sales growth,” said Glenn Murphy, chairman and chief executive officer of Gap Inc. “We are pleased to maintain our momentum of growing sales and earnings per share this quarter.”

The company’s third quarter of fiscal 2013 comparable sales increased 1 percent versus a 6 percent increase last year. Due to the 53rd week in fiscal year 2012, comparable sales for the third quarter of fiscal year 2013 are compared with the 13-week period ended November 3, 2012.

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