- Prachi Singh |
On a reported basis, Gap said second quarter fiscal year 2017 diluted earnings per share were 0.68 dollar and 0.58 dollar on an adjusted basis, excluding a 0.10 dollar benefit from insurance proceeds related to the Fishkill fire. Gap’s comparable sales were up 1 percent versus a 2 percent decrease last year, while net sales for the quarter were 3.80 billion dollars compared with 3.85 billion dollars for the second quarter of fiscal year 2016.
“With a third consecutive quarter of comp sales growth, we are seeing our investments in product, customer experience, and brand equity begin to pay off. Based on the strength of the first half, we are pleased to increase our full year earnings guidance,” said Art Peck, President and CEO, Gap Inc. in a press release.
Comparable sales results of the brand portfolio
The company reported positive 5 percent comparable sales at Old Navy Global versus flat last year, negative 1 percent at Gap Global versus negative 3 percent last year and negative 5 percent at Banana Republic Global versus negative 9 percent last year.
Gap added that the translation of foreign currencies into US dollars negatively impacted the company’s net sales by about 37 million dollars.
Gap updates FY17 earnings outlook
The company updated its reported diluted earnings per share guidance for fiscal year 2017 to be in the range of 2.12 dollars to 2.20 dollars. Excluding the benefit from insurance proceeds related to the Fishkill fire of about 0.10 dollar, the company expects its adjusted diluted earnings per share to be in the range of 2.02 dollars to 2.10 dollars.
The company continues to expect comparable sales for fiscal year 2017 to be flat to up slightly and net sales to be slightly below this range driven by an expected negative impact from foreign currency fluctuations year-over-year as well as the impact from international closures in fiscal year 2016.
The company paid a dividend of 0.23 dollar per share during the second quarter of fiscal year 2017. In addition, on August 10, 2017, the company announced that its board of directors authorized a third quarter dividend of 0.23 dollar per share.
Gap ended the quarter with 3,642 store locations in 47 countries, of which 3,179 were company-operated. The company continues to expect store count to be about flat at the end of fiscal year 2017 compared with fiscal year 2016.