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Gap Inc Comp store sales drop 8% in Nov

01
Dec '06

Gap Inc reported net sales of $1.40 billion for the four-week period ended November 25, 2006, which represents a 2 percent decrease compared with net sales of $1.43 billion for the same period ended November 26, 2005. The company's comparable store sales for November 2006 decreased 8 percent compared with a 4 percent decrease in November 2005.

Comparable store sales by division for November 2006 were as follows:
* Gap North America: negative 7 percent versus negative 5 percent last year
* Banana Republic North America: negative 1 percent versus negative 5 percent last year
* Old Navy North America: negative 10 percent versus negative 2 percent last year
* Gap International: negative 8 percent versus flat last year

"Overall, November was a challenging month as negative traffic trends persisted," said Sabrina Simmons, senior vice president, corporate finance, Gap Inc. "Promotional and markdown activities at Gap and Old Navy drove total company merchandise margins below last year, and we expect pressure on merchandise margins to continue into December."

Year-to-date net sales of $12.41 billion for the 43 weeks ended November 25, 2006; decreased 2 percent compared with net sales of $12.63 billion for the same period ended November 26, 2005. The company's year-to-date comparable store sales decreased 7 percent compared with a 5 percent decrease in the prior year.

The company reiterated that it expects inventory per squarefoot at the end of the fourth quarter to be up in the low-single digits compared with the prior year.

As of November 25, 2006, Gap Inc operated 3,188 store locations compared with 3,132 store locations last year.

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