Home / Knowledge / News / Apparel/Garments / Gap sales up 10% to $3.8 billion in Q1
Gap sales up 10% to $3.8 billion in Q1
11
Jun '18
Courtesy: Gap Inc
Courtesy: Gap Inc
In the first quarter of 2018, the net sales of Gap were recorded at $3.8 billion, an increase of 10 per cent compared with last year. Excluding the impact from the adoption of the new revenue recognition standard, net sales increased 6 per cent compared with last year. The comparable sales increased 1 per cent compared with a 2 per cent increase last year.

Gross profit was $1.43 billion in the first quarter of 2018, an increase of 10 per cent compared with last year. Excluding the impact from the adoption of the new revenue recognition standard, gross profit increased about 3 per cent compared with last year.

The company's gross margin was 37.7 per cent, a decrease of 20 basis points compared with last year. Excluding the impact from the adoption of the new revenue recognition standard, gross margin was 36.7 per cent, a decrease of 120 basis points compared with last year, largely due to the Gap brand. The operating margin was 6.1 per cent, a decrease of 130 basis points compared with last year. Excluding the impact from the adoption of the new revenue recognition standard, operating margin was 6.3 per cent, a decrease of 110 basis points compared with last year.

The company ended the first quarter of fiscal year 2018 with $1.4 billion in cash, cash equivalents, and short-term investments. Year-to-date free cash flow, defined as net cash from operating activities less purchases of property and equipment, was negative $204 million, which reflects a higher bonus payout in the first quarter of fiscal year 2018.

"We are pleased to have delivered our sixth consecutive quarter of positive comp growth, despite the expected challenges at Gap brand," said Art Peck, president and chief executive officer, Gap Inc. "Our balanced growth strategy provides the right foundation to differentiate our portfolio of brands in this retail environment, with strategic investments in value, active and digital fueled by productivity opportunities unique to our scaled operating platform."

The company ended the first quarter of fiscal year 2018 with 3,617 store locations in 45 countries, of which 3,171 were company-operated.

"Despite the pressures we faced in the first quarter, we are affirming our full-year guidance, reflecting our confidence in the underlying fundamentals of the business as well as the benefits of executing against our balanced growth strategy," said Teri List-Stoll, executive vice president and chief financial officer, Gap Inc.

For 2018, the company continues to expect comparable sales for fiscal year 2018 to be flat to up slightly. The company expects capital spending to be approximately $800 million for fiscal year 2018, with a continued focus on transformative infrastructure investments to support its omni-channel and digital strategies, such as information technology and supply chain. (RR)

Fibre2Fashion News Desk – India


Must ReadView All

British luxury brands eye US market post Brexit

Fashion | On 13th Nov 2018

British luxury brands eye US market post Brexit

British luxury brands are exploring the US market to forge new and...

FDI to be hit if EU withdraws GSP benefit to Myanmar: DICA

Apparel/Garments | On 13th Nov 2018

FDI to be hit if EU withdraws GSP benefit to Myanmar: DICA

Foreign direct investments (FDI) in Myanmar will be hit if the...

UK parliament panel asks fast fashion firms for answers

Apparel/Garments | On 13th Nov 2018

UK parliament panel asks fast fashion firms for answers

The Environmental Audit Committee in the United Kingdom has called on ...

Interviews View All

Top executives, Textile industry

Top executives
Textile industry

Denimsandjeans India 2018

Awen Delaval, Samatoa

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Md Hanifur Rahman, Aman Group

Md Hanifur Rahman
Aman Group

The level of understanding the job role and organisational requirements...

Nitesh Mittal,

Nitesh Mittal

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

Manuele Baggini,

Manuele Baggini

Comec Italia Srl is a world leader in the production of printing machines. ...

Tina Antoniades,

Tina Antoniades

India-headquartered Lulu & Sky is a rapidly escalating brand with the...

Luis Quijano, Liberty University

Luis Quijano
Liberty University

Focusing on bold patterns and colour palettes, Luis Quijano, a student at...

Justin Gutierrez, INDA

Justin Gutierrez
INDA

The Association of the Nonwoven Fabrics Industry (INDA) has created a new...

Suresh Patel, Sidwin Fabric

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Sanjukta Dutta, Sanjukta's Studio

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Anisha Chaudhari, Threads & Shirts

Anisha Chaudhari
Threads & Shirts

Threads &amp; Shirts is a freshly-tailored concept providing men/women a...

Prathyusha Garimella, Prathyusha Garimella

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

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

Leave your Comments


November 2018

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

news category


Related Categories:

Advanced Search