Gap Inc. Reports April and First Quarter Sales Results
10 May 2016 - 6:15AM
Business Wire
Company Sharpens Focus for Long-Term
Growth
Gap Inc. (NYSE: GPS) today announced April net sales were $1.12
billion for the four-week period ended April 30, 2016, compared
with net sales of $1.21 billion for the four-week period ended May
2, 2015. For the first quarter of fiscal year 2016, Gap Inc.’s net
sales were $3.44 billion compared with $3.66 billion for the first
quarter last year.
Gap Inc. also announced that it will take steps to better
position the company for improved business performance and to build
for the future. The company is identifying opportunities to
streamline its operating model to be more efficient and flexible,
while more fully exploiting its scale advantage. Additionally, the
company is evaluating its Banana Republic and Old Navy fleets,
primarily outside of North America, in order to sharpen its focus
on geographies with the greatest potential. More details will be
shared during the company’s first quarter fiscal 2016 earnings
announcement on May 19, 2016.
“Our industry is evolving and we must transform at a faster
pace, while focusing our energy on what matters most to our
customers,” said Art Peck, chief executive officer, Gap Inc. “We
are committed to better positioning the business to recapture
market share in North America and to capitalizing on strategic
international regions where there is a strong runway for
growth.”
April Comparable Sales Results
Gap Inc.’s comparable sales for April 2016 were down 7 percent
versus a 12 percent decrease last year. Comparable sales by global
brand for April 2016 were as follows:
- Gap Global: negative 4 percent
versus negative 15 percent last year
- Banana Republic Global: negative
7 percent versus negative 15 percent last year
- Old Navy Global: negative 10
percent versus negative 6 percent last year
First Quarter Comparable Sales Results
Gap Inc.’s comparable sales for the first quarter of fiscal year
2016 were down 5 percent versus a 4 percent decrease last year.
Comparable sales by global brand for the first quarter were as
follows:
- Gap Global: negative 3 percent
versus negative 10 percent last year
- Banana Republic Global: negative
11 percent versus negative 8 percent last year
- Old Navy Global: negative 6
percent versus positive 3 percent last year
First Quarter Guidance
The company expects diluted earnings per share for the first
quarter of fiscal year 2016 to be in the range of $0.31 to
$0.32.
As previously disclosed, gross margins were pressured as the
company entered April with more inventory than planned as a result
of weaker than expected traffic, which began in late March 2016 and
continued into April.
The company also noted that the Sunday and Monday of the
Memorial Day holiday falls in the fiscal month of June this year
versus May last year. The company expects the later holiday timing
to negatively impact May sales results and benefit June sales
results.
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 May 9, 2016 and available
for replay until 1:15 p.m. Pacific Time on May 13, 2016.
First Quarter Earnings
Gap Inc. will release its first quarter earnings results via
press release on May 19, 2016 at 1:15 p.m. Pacific Time. In
addition, the company will host a summary of Gap Inc.’s first
quarter results during a live conference call and webcast on May
19, 2016 from approximately 1:30 p.m. to 2:15 p.m. Pacific Time.
The conference call can be accessed by calling 1-855-5000-GPS or
1-855-500-0477 (participant passcode: 214046). International
callers may dial 913-643-0954. The webcast can be accessed
at www.gapinc.com.
May Sales
The company will report May sales at 1:15 p.m. Pacific Time on
June 2, 2016.
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 for the first
quarter of fiscal year 2016; and
- the impact of the later Memorial Day
holiday timing.
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;
- the risk that the company will be
unsuccessful in gauging apparel trends and changing consumer
preferences;
- the risk that changes in global
economic conditions or consumer spending patterns could adversely
impact the company’s results of operations;
- the highly competitive nature of the
company’s business in the United States and internationally;
- the risk that if the company is unable
to manage its inventory effectively, its gross margins will be
adversely affected; and
- the risk that comparable sales and
margins will experience fluctuations.
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 30, 2016, as well as
the company’s subsequent filings with the Securities and Exchange
Commission.
These forward-looking statements are based on information as of
May 9, 2016. 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 2015 net sales were $15.8 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20160509006508/en/
Gap Inc.Investor Relations:Jack Calandra,
415-427-1726Investor_relations@gap.comorMedia
Relations:Jennifer Poppers, 415-427-1729Press@gap.com
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