;
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

Vietnam targets $40 bn in textile-garment exports in 2019

Apparel/Garments | On 22nd Jan 2019

Vietnam targets $40 bn in textile-garment exports in 2019

The Vietnam Textile and Apparel Association (VITAS) has set a target...

Myanmar RMG units exporting to EU rose by 180 in 5 yrs

Apparel/Garments | On 22nd Jan 2019

Myanmar RMG units exporting to EU rose by 180 in 5 yrs

The number of readymade garment (RMG) factories in Myanmar that...

Courtesy: Microsoft

Textiles | On 22nd Jan 2019

Microsoft India launches e-com site for handloom weavers

Microsoft India recently launched a new e-commerce platform,...

Interviews View All

Viral Desai, Zenitex Mill Pvt Ltd

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Rajiv Sirohi, Shara

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Marazban F Velati, Sutlej Textiles & Industries limited

Marazban F Velati
Sutlej Textiles & Industries limited

No training can be effective till the candidate believes in it.

Fan Liyuan,

Fan Liyuan

Chinese company Jiangsu Yingyang Nonwoven Machinery, established in 1993,...

Ramez Basmaji,

Ramez Basmaji

Fabusse is a Lebanon-based fashion agency that offers a variety of...

Ravindra Jain, Ashish Baid,

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Eric Scholler, Groz-Beckert

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Alfonso Marra, Klopman

Alfonso Marra
Klopman

It was in 1968 that Klopman introduced the concept of poly/cotton workwear ...

Mr Hartmann Huth, Trevira GmbH

Mr Hartmann Huth
Trevira GmbH

Trevira GmbH is an innovative European manufacturer of high-value branded...

Tony Ward, Tony Ward

Tony Ward
Tony Ward

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

Mike Hoffman, Gildan Activewear SRL

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Rupa Sood and Sharan Apparao, Nayaab

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

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


January 2019

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

news category


Related Categories:

Advanced Search