Gap Inc earns $3.4 bn in net sales in Q1 FY17

Gap Inc reaffirmed its full-year diluted earnings per share guidance to be in the range of $1.95 to $2.05. Its comparable sales for the first quarter of fiscal year 2017 were up 2 per cent versus a 5 per cent decrease last year.

Comparable sales for Old Navy Global were positive 8 per cent in the first quarter this year versus negative 6 per cent last year. Gap Global reported negative 4 per cent versus negative 3 per cent last year and Banana Republic Global achieved negative 4 per cent versus negative 11 per cent last year.

"We are pleased with our positive comp and earnings growth this quarter. We have made substantial improvements in product quality and fit, and our increasing responsive capabilities are enabling us to better react to trends and demand," said Art Peck, president and chief executive officer, Gap Inc.

"While the retail environment continues to be challenging, we are focused on delivering the best possible product and customer experience, and our ability to leverage a portfolio of iconic brands and operating scale uniquely positions the company for long-term growth,” Peck continued.

The company reaffirmed its full year diluted earnings per share guidance to be in the range of $1.95 to $2.05. It updated its diluted earnings per share guidance for the first half of fiscal year 2017 to be down mid-single digits when compared with the adjusted diluted earnings per share for the first half of fiscal year 2016, an improvement from the company’s previous guidance of down high-single digits.

The company noted that foreign currency fluctuations negatively impacted earnings per share for the first quarter of fiscal year 2017 by an estimated $0.03, or about 9 percentage points of earnings per share growth.

The company continues to expect comparable sales for fiscal year 2017 to be flat to up slightly. Net sales for fiscal year 2017 are expected to be slightly below this range driven by an expected negative impact from foreign currency fluctuations year-over-year. (KD)

Fibre2Fashion News Desk – India