Home / Knowledge / News / Apparel/Garments / Gap Q2FY16 sales down 2% from currency impact
Gap Q2FY16 sales down 2% from currency impact
Aug '15
For the second fiscal quarter of 2016 ended August 1, 2015, net sales at apparel marketer Gap Inc went down 2 per cent impacted by translation of net sales in foreign currencies into US dollars.

For the three months to August 1, 2015 Gap Inc.'s net sales declined 2 per cent to $3.90 billion compared with $3.98 billion for the second quarter of last fiscal.

Comparable sales for the reporting quarter were also down 2 per cent vis-à-vis flat in the prior fiscal's second quarter.

“On a constant currency basis, net sales for the second quarter of fiscal 2016 were nearly flat as against the same period of the earlier fiscal,” a press release from Gap informed.

“In calculating the net sales change on a constant currency basis, current year foreign exchange rates are applied to both current year and prior year net sales,” the clothing marketer said.

“This is done to enhance the visibility of underlying sales trends, excluding the impact of foreign currency exchange rate fluctuations,” Gap added.

“The translation of net sales in foreign currencies into US dollars negatively impacted sales by about $100 million, primarily due to the weakening Japanese yen and Canadian dollar,” it explained.

According to Gap, on top of three consecutive years of growth, the Old Navy brand delivered another quarter of positive comparable sales, demonstrating the continued success of its trend-predictive product pipeline.

“Gap brand continues to make progress against its strategic actions, including right-sizing its North America store count to create a smaller, more vibrant fleet of stores,” it observed.

Gap further added that during the quarter, it expanded its 'Reserve in Store' service to all US Athleta stores, while its 'Order in Store'' capabilities continued to offer more customers expanded inventories.

On a reported basis, Gap Inc.'s diluted earnings per share were $0.52 in the quarter under review, including the negative impacts from foreign currency fluctuations, West Coast port delays and strategic actions.

Excluding the negative impact of about $0.12 from strategic actions, the company's adjusted diluted earnings per share were $0.64 for the second quarter of fiscal 2016.

“I remain confident in our strategies to improve business performance and drive loyalty going forward,” said Art Peck, chief executive officer, Gap Inc.

“Our evolving product operating model is laying the foundation to more consistently deliver on-trend product collections across our portfolio,” Peck also informed.

The company also reaffirmed its full-year earnings per share guidance to be in the range of $2.75 to $2.80, excluding the impact from strategic actions previously announced on June 15, 2015.

In addition, the company distributed about $800 million to shareholders through share repurchases and dividends fiscal year-to-date, reinforcing its commitment to returning excess cash to shareholders. (AR)

Fibre2Fashion News Desk – India

Must ReadView All

Courtesy: Raymond

Apparel/Garments | On 28th Jun 2017

Raymond plans to invest Rs 1,400 crore in Amravati plant

Raymond, Indian textiles and apparel major, has decided to invest Rs...

Textiles | On 28th Jun 2017

GST and textiles industry: Analysis and opinion

The Goods and Services Tax (GST) is at long last all set to be rolled ...

Textiles | On 28th Jun 2017

India probing dumping of polyester yarn by China

Indian government is probing anti-dumping allegations against a...

Interviews View All

Sonia Agarwal

‘The terms eco-friendly and organic are common but everyone perceives them ...

Anavila Misra
Anavila Collection

Fashion shows are also encouraging and highlighting sustainable fashion

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Yash P. Kotak
Bombay Hemp Company

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

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

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


news category

Related Categories:
July 2017

July 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