Gap reports 3 percent decline in July comparable sales

Gap reported net sales for the four‐ week period ended August 1, 2015 of 1.12 billion dollars compared with net sales of 1.17 billion dollars for the four‐week period ended August 2, 2014. For the second quarter of fiscal year 2015, Gap’s net sales decreased 2 percent to 3.90 billion dollars compared with 3.98 billion dollars for the second quarter last year. On a constant currency basis, net sales for the second quarter of fiscal year 2015 were about flat versus last year.

The company blamed negative impact of foreign currencies on the company’s reported net sales for the second quarter by about 100 million dollars, primarily due to the weakening Japanese yen and Canadian dollar. “We’re pleased that Old Navy delivered another consecutive quarter of growth, while we continued to make progress against previously announced strategic actions at Gap brand,” said Sabrina Simmons, Chief Financial Officer, Gap.

Comparable sales for July were down 3 percent versus a 2 percent increase last year. Comparable sales Gap Global were negative 7 percent versus negative 2 percent last year. Banana Republic Global comparable sale were negative 10 percent versus positive 6 percent last year and Old Navy Global comparable sales were positive 3 percent versus positive 3 percent last year.

Gap comparable sales for the second quarter were down 2 percent versus flat last year. Comparable sales at Gap Global were negative 6 percent versus negative 5 percent last year, at Banana Republic Global: negative 4 percent versus flat last year and at Old Navy Global, they were positive 3 percent versus positive 4 percent last year.

The company noted that its second quarter earnings per share range includes impacts associated with foreign currency fluctuations, West Coast port delays, and previously announced strategic actions primarily related to Gap brand. Excluding the negative impact from the strategic actions, which was about 0.12 dollar, the company expects its adjusted diluted earnings per share to be in the range of 0.63 dollar to 0.64 dollar for the second quarter of fiscal year 2015. On a reported basis, the company expects diluted earnings per share to be in the range of 0.51 dollar to 0.52 dollar. Gap will release its second quarter earnings results on August 20, 2015 and August sales on September 3, 2015.