Home / Knowledge / News / Apparel/Garments / Apparel marketer Gap posts 3% dip in Q1FY16 net sales
Apparel marketer Gap posts 3% dip in Q1FY16 net sales
23
May '15
For the 13 weeks period ended May 2, 2015, net sales at NYSE listed and apparel marketer Gap Inc were down 3 per cent year over year.

Gap Inc.’s net sales declined 3 per cent to $3.66 billion in the first quarter of fiscal 2016 compared with $3.77 billion for the first quarter of previous fiscal.

In a press release, Gap noted that translation of net sales from foreign currencies into US dollars negatively impacted the company’s reported sales by about $90 million.

On a constant currency basis, net sales for the first quarter of fiscal 2015 fell by just 1 per cent over the prior fiscal first quarter.

Gap explained that while calculating net sales change 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 sales trends, excluding the impact of foreign currency exchange rate fluctuations,” it said.

For the quarter ended May 2, 2015 comparable sales were down higher by 4 per cent versus also a negative 1 per cent in the first quarter of fiscal 2015.

In the reporting quarter, operating expenses amounted to $996 million, down $27 million compared with $1.02 billion in the same quarter of last fiscal.

The apparel marketer’s operating margin fell to 10.6 per cent in the first quarter of fiscal 2016 from 11.7 per cent from the fiscal ago quarter.

The company continues to expect operating margin to be down about 1 percentage point in fiscal 2016 when compared with fiscal 2015.

The effective tax rate for the quarter under review was 37.4 per and Gap Inc continues to expect its full fiscal effective tax rate to be about 38 per cent.

At the end of the first quarter of fiscal 2016, inventory dollars per store were up about 4 per cent on a year-over-year basis.

At the end of the second quarter of fiscal 2016, it expects year-on-year inventory dollars per store to be up slightly compared with last fiscal’s same quarter.

In the reporting quarter, diluted earnings per share were down to $0.56 vis-à-vis diluted earnings per share of $0.58 in the first quarter of fiscal 2015.

The company observed that impact of foreign exchange reduced its diluted earnings per share growth rate in the first quarter of fiscal 2016 by about 3 per cent.

The company reaffirmed its guidance for fiscal 2016 diluted earnings per share to be in the range of $2.75 to $2.80. (AR)

Fibre2fashion News Desk - India


Must ReadView All

Courtesy: BekaertDeslee

Textiles | On 23rd Oct 2017

BekaertDeslee to expand North American facility

BekaertDeslee, one of the largest manufacturer of mattress textiles...

Courtesy: A&E

Textiles | On 23rd Oct 2017

A&E unveils Magic using Repreve sewing thread

American & Efird (A&E), a leading developer of industrial and...

Courtesy: Messe Frankfurt

Textiles | On 23rd Oct 2017

Over 4,000 exhibitors attend Intertextile Shanghai 2017

Another successful Intertextile Shanghai Apparel Fabrics has wrapped...

Interviews View All

Representatives
Textile & apparel industry

GST is a complicated and lengthy process

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Sachin Sharma
Gem Enviro Management Pvt Ltd

There are no significant differences between virgin yarn and PET recycled...

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Suresh P Bagrecha

Komal Texfab, founded in 1981, is into manufacturing of knitted fabrics,...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Yash P. Kotak
Bombay Hemp Company

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

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

October 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
76.1%
No
12.7%
Skip
11.3%

Total Votes: 71

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.0%
No
28.2%
Skip
9.9%

Total Votes: 71

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
85.9%
No
9.9%
Skip
4.2%

Total Votes: 71

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
76.1%
No
11.3%
Skip
12.7%

Total Votes: 71


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