Company Guides to the High End of its Fiscal
2015 Earnings per Share Range
Gap Inc. (NYSE: GPS) today reported that net sales for the
four-week period ended January 30, 2016 were $813 million compared
with net sales of $888 million for the four-week period ended
January 31, 2015. For the fourth quarter of fiscal year 2015, Gap
Inc.’s net sales were $4.39 billion compared with $4.71 billion for
the fourth quarter last year.
On a constant currency basis, Gap Inc. net sales decreased 5
percent for the fourth quarter of fiscal year 2015. In calculating
net sales growth on a constant currency basis, current year foreign
exchange rates are applied to both current year and prior year net
sales. This is done to enhance the visibility of underlying
business trends, excluding the impact of foreign currency exchange
rate fluctuations.
“We are pleased to guide to the high end of our previously
announced full-year earnings per share range,” said Sabrina
Simmons, chief financial officer of Gap Inc. “As we kick-off fiscal
year 2016, our brands look forward to introducing their new Spring
collections to customers.”
January Comparable Sales Results
Gap Inc.’s comparable sales for January 2016 were down 8 percent
versus negative 3 percent last year. Comparable sales by global
brand for January 2016 were as follows:
- Gap Global: negative 6 percent
versus negative 9 percent last year
- Banana Republic Global: negative
17 percent versus positive 2 percent last year
- Old Navy Global: negative 6
percent versus positive 3 percent last year
Fourth Quarter Comparable Sales Results
Gap Inc.’s comparable sales for the fourth quarter of fiscal
year 2015 were down 7 percent versus positive 2 percent last year.
Comparable sales by global brand for the fourth quarter were as
follows:
- Gap Global: negative 3 percent
versus negative 6 percent last year
- Banana Republic Global: negative
14 percent versus positive 1 percent last year
- Old Navy Global: negative 8
percent versus positive 11 percent last year
Full-Year and Fourth Quarter Guidance
The company narrowed its full-year adjusted diluted earnings per
share guidance range for fiscal year 2015 to $2.41 to $2.42,
excluding the one-time negative impact from the previously
announced strategic actions of about $0.20 per diluted share, for
fiscal year 2015.
For the fourth quarter of fiscal year 2015, the company expects
adjusted diluted earnings per share to be in the range of $0.56 to
$0.57.
Please see the reconciliations of adjusted diluted earnings per
share, a non-GAAP financial measure, from the GAAP financial
measure in the table at the end of this press release.
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 February 8, 2016 and
available for replay until 1:15 p.m. Pacific Time on February 12,
2016.
Fourth Quarter Earnings
Gap Inc. will release its fourth quarter earnings results via
press release on February 25, 2016 at 1:15 p.m. Pacific Time. In
addition, the company will host a summary of Gap Inc.’s fourth
quarter results during a live conference call and webcast on
February 25, 2016 from approximately 2:00 p.m. to 3:00 p.m. Pacific
Time. The conference call can be accessed by calling 1-855-5000-GPS
or 1-855-500-0477 (participant passcode: 2809688). International
callers may dial 913-643-0954. The webcast can be accessed
at www.gapinc.com.
February Sales
The company will report February sales at 1:15 p.m. Pacific Time
on March 3, 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 full year
and the fourth quarter of fiscal year 2015.
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.
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 31, 2015, as well as
the company’s subsequent filings with the Securities and Exchange
Commission.
These forward-looking statements are based on information as of
February 8, 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.
The Gap, Inc. NON-GAAP FINANCIAL MEASURES
UNAUDITED ADJUSTED EXPECTED
EARNINGS PER SHARE RANGE Adjusted expected diluted
earnings per share is a non-GAAP financial measure. This guidance
is provided to enhance visibility into the company's expected
results excluding impact from its strategic actions primarily
related to Gap brand.
13 Weeks EndedJanuary 30,
2016
Fiscal Year 2015 Low End High End Low
End High End Expected earnings per share - diluted $
0.52 $ 0.53 $ 2.21 $ 2.22 Add: Impact from strategic actions
0.04 0.04 0.20 0.20 Adjusted expected earnings
per share - diluted $ 0.56 $ 0.57 $ 2.41 $ 2.42
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version on businesswire.com: http://www.businesswire.com/news/home/20160208006236/en/
Gap Inc.Investor Relations Contact:Jack Calandra,
415-427-1726Investor_relations@gap.comorMedia Relations
Contact:Kari Shellhorn, 415-521-0595Press@gap.com
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