Home / Knowledge / News / Apparel/Garments / Exchange fluctuations push Gap to post flat sales growth
Exchange fluctuations push Gap to post flat sales growth
Nov '14
Impacted by foreign exchange fluctuations, NYSE listed, apparel marketer, Gap Inc reported flat sales growth in the third quarter of fiscal 2014-15 as against the same period of previous fiscal year.

For the third quarter of 2014, Gap net sales reached $3.97 billion compared with $3.98 billion for the third quarter last year.

Gap said translation of net sales in foreign currencies into US dollars negatively impacted reported net sales by approximately $31 million in the third quarter of fiscal year 2014.

However, net sales increased 1 per cent on a constant currency basis for the third quarter of 2014, by applying current year foreign exchange rates to both current year and prior year net sales.

Third quarter of 2014 diluted earnings per share rose to $0.80 vis-a-vis $0.72 in the third quarter of 2013.

During the quarter under review, operating expenses were up $29 million to $1.04 billion, compared with $1.01 billion in the third quarter of last year.

Marketing expenses also went up by $14 million to $176 million, driven primarily by increased spending at Gap brand.

Gap posted operating margin at 13.9 per cent in the third quarter of 2014 versus 14.5 per cent in prior year quarter.

The apparel marketer also now expects its full-year fiscal 2014 operating margin to be about 12.5 per cent, down from 13.3 per cent in fiscal year 2013.

By maintaining strong discipline over inventory management, inventory dollars per store were down 2 per cent year-on-year at the end of the third quarter of year 2014.

At the end of the fourth quarter of 2014, the company forecasts year-over-year inventory dollars per store to be down slightly compared with the fourth quarter last year.

Gap ended the reporting quarter with $954 million in cash and cash equivalents.

The apparel marketer used $433 million to repurchase 11.4 million shares in the quarter under review and ended the third quarter with 424 million shares outstanding.

As announced on October 16, 2014, GAP directors approved a $500 million share repurchase authorization, of which about $450 million was still available as of the end of the third quarter.

The company paid a dividend of $0.22 per share during the third quarter of fiscal year 2014. In addition, its board of directors authorized a fourth quarter dividend of $0.22 per share.

Gap updated its diluted earnings per share guidance for the full fiscal year 2014 to be in the range of $2.73 to $2.78, which includes the gain on the asset sale of $39 million. (AR)

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 22nd Apr 2017

Strong rupee & weak trade to affect textile exporters

Textile and apparel exporters' earnings and EBITDA margins will be...

Textiles | On 22nd Apr 2017

Myntra acquires InLogg

With an aim to strengthen supply chain and logistics, Flipkart-owned...

Textiles | On 22nd Apr 2017

Aditya Birla Group launches new variant Liva Crème

After its successful launch of high quality fabric Liva in 2015,...

Interviews View All

Yash Agarwal
Hitansh Online

Every market region has its own culture and trends

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Robert Brunner

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

April 2017

April 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search