Gap expects diluted EPS of $2.20-$2.25 in FY16

04 Mar '16
2 min read
Courtesy: Gap Inc
Courtesy: Gap Inc

Gap Inc, an apparel and accessories retailer based in the US, has forecast its diluted earnings per share (EPS) to be in the range of $2.20 to $2.25 in fiscal 2016 as compared to $2.23 in fiscal 2015, ending on January 30, 2016, according to a press statement released by the retailer.

The EPS forecast for fiscal 2016 is derived after taking into account the impact of foreign currency fluctuations at current exchange rates, which is likely to affect growth in EPS by around 8 percentage points.

The retailer's operating margin for FY16 is likely to be 9.5 per cent as compared to 9.6 per cent in fiscal 2015.

The retailer noted that in fiscal 2016 total inventory guidance will replace the inventory per store metric. It expects total inventory to be down in the low single-digits at the end of the first quarter of fiscal 2016.

Fiscal 2015 capital expenditures were $726 million below Gap's prior guidance. For fiscal 2016, it expects capital spending to be approximately $650 million, with a continued focus on mobile and supply chain capabilities.

Gap ended fiscal 2015 with 3,721 store locations in 51 countries, of which 3,275 were company-operated. In fiscal 2016, the company expects to open about 40 company-operated stores, net of closures and repositions. (MCJ)

Fibre2Fashion News Desk – India

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