The company’s second quarter comparable sales increased 4 percent. Net income for the second quarter was $243 million, up 29 percent compared with the second quarter last year. Second quarter diluted earnings per share increased 40 percent to $0.49 compared with $0.35 last year.
“Customers responded well to our product offerings across our brands, driving a healthy increase in sales and earnings per share during the quarter,” said Glenn Murphy, chairman and chief executive officer of Gap Inc. “Our continued focus on product and store execution are helping to drive positive momentum and we’re committed to sustaining solid performance for the remainder of the year.”
Given second quarter performance, the company has raised its estimate for fiscal year 2012 diluted earnings per share to be in the range of $1.95 to $2.00, compared with $1.56 in fiscal year 2011.
Second Quarter Financial and Business Highlights
• In North America, Gap, Banana Republic, and Old Navy each delivered positive comparable sales for the second consecutive quarter.
• Total net sales for the Gap Inc. Direct division increased 24 percent to $384 million compared with $309 million last year.
• Net sales outside of the U.S. and Canada (including Gap Inc. Direct and Franchise) increased 7 percent; the company opened its first Old Navy store outside of North America in Tokyo and continued to expand its Gap brand store base in China.
• Franchise net sales increased 25 percent compared with last year and the company opened its 250th franchise store.
• The company opened 11 Athleta stores, doubling its fleet to 22 stores across North America.
Second Quarter Comparable Sales Results
The company’s second quarter comparable sales were up 4 percent compared with the second quarter last year.
Comparable sales for the second quarter of fiscal year 2012 were as follows:
• Gap North America: positive 7 percent versus negative 3 percent last year
• Banana Republic North America: positive 7 percent versus negative 2 percent last year
• Old Navy North America: positive 3 percent versus flat last year
• International: negative 5 percent versus negative 4 percent last year
Additional Results and 2012 Outlook
Earnings per Share
Second quarter diluted earnings per share of $0.49 increased 40 percent compared with $0.35 for the second quarter last year.
The company raised its guidance for fiscal year 2012 diluted earnings per share to be in the range of $1.95 to $2.00, compared with $1.56 in fiscal year 2011.
Depreciation and Amortization
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