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Gap blames challenging conditions for November sales decline

By Prachi Singh

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Business

Gap net sales for the four-week period ended November 26, 2016 were 1.53 billion dollars compared with 1.57 billion dollars for the same period last year. Comparable sales were down 1 percent versus an 8 percent decrease last year. The company estimated that the Fishkill distribution centre fire negatively impacted its November comparable sales by approximately 3 percentage points.

“While November traffic trends remained challenging, we are encouraged that performance improved in the back half of the month and we remain focused on executing our holiday plans,” said Sabrina Simmons, CFO of Gap in a company statement.

November comparable sales by global brands

Gap noted that the majority of the fire-related negative impact to comparable sales during the fourth quarter of fiscal year 2016 occurred in November. Comparable sales at Gap Global were negative 3 percent, including an estimated negative impact of about 4 percentage points, versus negative 4 percent last year.

Comparable sales at Banana Republic Global were positive 5 percent, which included negative impact of approximately 3 percentage points, versus negative 19 percent last year and Old Navy Global posted negative 2 percent comparable sales, including negative impact of approximately 1 percentage point, versus negative 9 percent last year.

Picture:Banana Republic

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