Gap Inc. (NYSE: GPS) today reported that net sales for the
four-week period ended October 31, 2015 were $1.20 billion compared
with net sales of $1.26 billion for the four-week period ended
November 1, 2014. For the third quarter of fiscal year 2015, Gap
Inc.’s net sales decreased 3 percent to $3.86 billion compared with
$3.97 billion for the third quarter of last year.
On a constant currency basis, net sales for the third quarter of
fiscal year 2015 were flat versus last year.1 The company noted
that the translation of foreign currencies into U.S. dollars
negatively impacted the company’s reported net sales for the third
quarter of fiscal year 2015 by about $98 million, primarily due to
the weakening Japanese yen and Canadian dollar.
“With fall behind us, the teams across our portfolio are focused
on strong execution for the holiday season," said Sabrina Simmons,
chief financial officer, Gap Inc.
October Comparable Sales Results
Gap Inc.’s comparable sales for October 2015 were down 3 percent
versus a 3 percent decrease last year. Comparable sales by global
brand for October 2015 were as follows:
- Gap Global: negative 4 percent
versus negative 7 percent last year
- Banana Republic Global: negative
15 percent versus negative 2 percent last year
- Old Navy Global: positive 2
percent versus flat last year
Third Quarter Comparable Sales Results
Gap Inc.’s comparable sales for the third quarter of fiscal year
2015 were down 2 percent versus a 2 percent decrease last year.
Comparable sales by global brand for the third quarter of fiscal
year 2015 were as follows:
- Gap Global: negative 4 percent
versus negative 5 percent last year
- Banana Republic Global: negative
12 percent versus flat last year
- Old Navy Global: positive 4
percent versus positive 1 percent last year
Third Quarter Guidance
The company expects its adjusted diluted earnings per share to
be in the range of $0.62 to $0.63, excluding the negative impact
from the previously announced strategic actions, which was about
$0.025 for the third quarter of fiscal year 2015. Please see the
reconciliation of adjusted diluted earnings per share, a non-GAAP
financial measure, from the GAAP financial measure in the table at
the end of this press release.
Additionally, the company noted that it now expects
year-over-year inventory dollars per store at the end of the third
quarter of fiscal year 2015 to be slightly lower than the guidance
provided in the company’s second quarter fiscal year 2015 earnings
press release.
1 In calculating the net sales change on a constant currency
basis, current year foreign exchange rates are applied to both
current year and prior year net sales. This is done to enhance the
visibility of underlying sales trends, excluding the impact of
foreign currency exchange rate fluctuations.
Additional insight into Gap Inc.’s sales performance is
available by calling 1-800-GAP-NEWS (1-800-427-6397). International
callers may call 706-902-4949. The recording will be available at
approximately 1:15 p.m. Pacific Time on November 9, 2015 and
available for replay until 1:15 p.m. Pacific Time on November 13,
2015.
Third Quarter Earnings
Gap Inc. will release its third quarter earnings results via
press release on November 19, 2015 at 1:15 p.m. Pacific Time. In
addition, the company will host a summary of Gap Inc.’s third
quarter results during a live conference call and webcast on
November 19, 2015 from approximately 2:00 p.m. to 2:45 p.m. Pacific
Time. The conference call can be accessed by calling 1-855-5000-GPS
or 1-855-500-0477 (participant passcode: 2687902). International
callers may dial 913-643-0954. The webcast can be accessed
at www.gapinc.com.
November Sales
The company will report November sales on December 3, 2015.
Forward-Looking Statements
This press release and related sales recording contain
forward-looking statements within the "safe harbor" provisions of
the Private Securities Litigation Reform Act of 1995. All
statements other than those that are purely historical are
forward-looking statements. Words such as "expect," "anticipate,"
"believe," "estimate," "intend," "plan," "project," and similar
expressions also identify forward-looking statements.
Forward-looking statements include statements regarding:
- earnings per share and inventory
dollars per store for the third quarter of fiscal year 2015.
Because these forward-looking statements involve risks and
uncertainties, there are important factors that could cause the
company's actual results to differ materially from those in the
forward-looking statements. These factors include, without
limitation, the following:
- the risk that additional information
may arise during the company’s close process or as a result of
subsequent events that would require the company to make
adjustments to its financial expectations.
Additional information regarding factors that could cause
results to differ can be found in the company’s Annual Report on
Form 10-K for the fiscal year ended January 31, 2015, as well as
the company’s subsequent filings with the Securities and Exchange
Commission.
These forward-looking statements are based on information as of
November 9, 2015. The company assumes no obligation to publicly
update or revise its forward-looking statements even if experience
or future changes make it clear that any projected results
expressed or implied therein will not be realized.
About Gap Inc.
Gap Inc. is a leading global retailer offering clothing,
accessories, and personal care products for men, women, and
children under the Gap, Banana Republic, Old Navy, Athleta, and
Intermix brands. Fiscal year 2014 net sales were $16.4 billion. Gap
Inc. products are available for purchase in more than 90 countries
worldwide through about 3,300 company-operated stores, over 400
franchise stores, and e-commerce sites. For more information,
please visit www.gapinc.com.
The Gap, Inc.NON-GAAP FINANCIAL
MEASURESUNAUDITED
ADJUSTED EXPECTED EARNINGS PER SHARE RANGE
Adjusted expected diluted earnings per share is a non-GAAP
financial measure. This guidance is provided to enhance visibility
into the company's expected results for the third quarter of fiscal
year 2015 excluding impact from its strategic actions primarily
related to Gap brand.
13 Weeks Ended
October 31, 2015
Low End High End Expected earnings per share -
diluted $ 0.60 $ 0.61 Add: Impact from strategic actions
0.025 0.025 Adjusted expected earnings per share - diluted $
0.62 $ 0.63
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version on businesswire.com: http://www.businesswire.com/news/home/20151109006609/en/
Gap Inc.Investor Relations Contact:Jack Calandra,
415-427-1726Investor_relations@gap.comorMedia Relations
Contact:Jennifer Poppers, 415-427-1729Press@gap.com
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