Gap Inc Comparable Store sales down 16%

11 Nov '08

3 min read

Gap Inc reported net sales of $1.08 billion for the four-week period ended November 1, 2008, which is a decrease of 12 percent as compared with net sales of $1.23 billion for the same period ended November 3, 2007. The company's comparable store sales for October 2008 decreased 16 percent compared with an 8 percent decrease for October 2007.

Comparable store sales by division for October 2008 were as follows:

- Gap North America: negative 14 percent versus negative 7 percent last year
- Banana Republic North America: negative 17 percent versus negative 2 percent last year
- Old Navy North America: negative 20 percent versus negative 11 percent last year
- International: negative 5 percent versus negative 6 percent last year

“In October, we continued to deliver merchandise margins significantly above last year despite the tough market conditions,” said Sabrina Simmons, chief financial officer of Gap Inc. “We are reaffirming our full year earnings guidance and will continue to use inventory and cost management to offset what we anticipate will be a challenging holiday season.”

Third Quarter Sales Results
For the thirteen weeks ended November 1, 2008, total company net sales were $3.56 billion, which is a decrease of 8 percent as compared with net sales of $3.85 billion for the thirteen weeks ended November 3, 2007. The company's third quarter comparable store sales decreased 12 percent compared with a decrease of 5 percent in the third quarter of the prior year.

Comparable store sales by division for the third quarter of fiscal year 2008 were as follows:

Gap North America: negative 7 percent versus negative 6 percent last year
Banana Republic North America: negative 11 percent versus positive 1 percent last year
Old Navy North America: negative 18 percent versus negative 8 percent last year
International: negative 1 percent versus negative 4 percent last year
Third Quarter and Fiscal Year Earnings Guidance

Gap Inc. expects diluted earnings per share on a GAAP basis for the third quarter to be $0.33 to $0.35, compared with diluted earnings per share of $0.30 for the third quarter of last year.

The company reaffirmed that it expects full year diluted earnings per share of $1.30 to $1.35 on a GAAP basis, compared with fiscal year 2007 diluted earnings per share of $1.05.

Third Quarter Earnings
Gap Inc. will release its third quarter earnings via press release on November 20, 2008, at 1:30 p.m. Pacific Time.

November Sales
The company will report November sales on December 4, 2008.

Gap Inc. is a leading global specialty retailer offering clothing, accessories and personal care products for men, women, children and babies under the Gap, Banana Republic, Old Navy, Piperlime and Athleta brand names.

Gap Inc

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