Net sales for the third quarter of fiscal 2017 stood at $3.84 billion compared to $3.80 billion for the third quarter of fiscal 2016. The company’s operating margin for the reported period was 9.8 per cent compared with 10.2 per cent last year or 11.0 percent last year on an adjusted basis.
The company raised its reported diluted earnings per share guidance for fiscal 2017 to be in the range of $2.18-$2.22. Adjusted to exclude the second quarter benefit from insurance proceeds related to the Fishkill fire of about $0.10, the company now expects adjusted diluted earnings per share to be in the range of $2.08-$2.12.
Third quarter 2017 operating expenses were $1.15 billion compared to $1.10 billion last year. Excluding restructuring costs of $36 million recorded in the third quarter of 2016, operating expenses were up about $80 million when compared with last year on an adjusted basis. The company noted the increase in adjusted operating expenses was primarily driven by an increase in marketing and payroll, largely due to bonus, as well as investments in digital and customer initiatives that support the company’s balanced growth strategy.
"Today, we are happy to report our fourth consecutive quarter of positive comps, reflecting the continued momentum in key parts of our business," said Art Peck, president and chief executive officer, Gap Inc.
"We continue to make progress against the balanced growth strategy we outlined in September, driving efficiency at our more mature brands, while growing our footprint in the value and active space, and investing in our online and mobile experience," concluded Peck.
Fiscal year-to-date 2017 capital expenditures were recorded at $463 million. The company continues to expect capital spending to be approximately $625 million for 2017, excluding costs associated with the rebuilding of the company’s Fishkill, New York distribution centre campus and related supply chain spend, which is now estimated to be about $175 million. (RR)
Fibre2Fashion News Desk – India
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