Due to the 53rd week in fiscal year 2012, comparable sales for the first quarter of fiscal year 2013 are compared with the 13-week period ended May 5, 2012. On this basis, the company’s first quarter comparable sales increased 2 percent compared with a 4 percent increase in the first quarter last year.

“We are pleased with our strong start to the year, especially first quarter sales,” said Glenn Murphy, chairman and chief executive officer of Gap Inc. “We remain focused on continuing to deliver shareholder value.”

First quarter diluted earnings per share increased to $0.71 compared with $0.47 last year. The fiscal year 2013 first quarter diluted earnings per share included a positive impact from the calendar shift created by the 53rd week in fiscal year 2012 and a benefit from the favorable resolution of tax positions in the quarter. The company reaffirmed its fiscal year 2013 diluted earnings per share guidance of $2.52 to $2.60.

Additional First Quarter 2013 Financial and Business Highlights

- Positive 2 percent comparable sales versus positive 4 percent last year, driven by strength in all three global brands: Gap, Old Navy, and Banana Republic.
- Operating margin expanded 290 basis points to 14.2 percent.
- Net earnings were up $100 million, or 43 percent, compared with the first quarter last year.
- Gap Inc. opened five Athleta stores in the first quarter, for a total of 40 stores open to date.
- The company opened nine Old Navy stores in Japan in the quarter, for a total of 10 stores open to date.
- The company continued to expand its store base in China, opening two additional stores in the quarter, for a total of 49 stores.

First Quarter Comparable Sales Results

Comparable sales for the first quarter of fiscal year 2013 were as follows:

- Gap Global: positive 3 percent versus positive 2 percent last year
- Old Navy Global: positive 3 percent versus positive 4 percent last year
- Banana Republic Global: flat versus positive 5 percent last year

Gap Inc