Gap Q3 and October net sales decline

Gap has said that its net sales for the four-week period ended October 31, 2015 were 1.20 billion dollars compared with net sales of 1.26 billion dollars for the four-week period ended November 1, 2014. For the third quarter of fiscal year 2015, Gap’s net sales decreased 3 percent to 3.86 billion dollars compared with 3.97 billion dollars 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. The company noted that the translation of foreign currencies into US dollars negatively impacted the company’s reported net sales for the third quarter by about 98 million dollars, 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.

October comparable sales results

Gap’s comparable sales for October were down 3 percent versus a 3 percent decrease last year. Comparable sales at Gap Global were negative 4 percent versus negative 7 percent last year, at Banana Republic Global - negative 15 percent versus negative 2 percent last year and at Old Navy Global - positive 2 percent versus flat last year.

For the third quarter, Gap’s comparable sales were down 2 percent versus a 2 percent decrease last year. Comparable sales at Gap Global were negative 4 percent versus negative 5 percent last year, at Banana Republic Global - negative 12 percent versus flat last year and Old Navy Global - positive 4 percent versus positive 1 percent last year.

The company expects its adjusted diluted earnings per share to be in the range of 0.62 dollar to 0.63 dollar, excluding the negative impact from the previously announced strategic actions, which was about 0.025 dollar for the third quarter of fiscal year 2015.