Gap Inc. Reports September Sales Results
October 06 2016 - 4:15PM
Business Wire
Gap Inc. (NYSE: GPS) today reported that net sales for the
five-week period ended October 1, 2016 decreased 2 percent to $1.43
billion compared with net sales of $1.46 billion for the five-week
period ended October 3, 2015.
"While we remain focused on performance across the portfolio, we
are pleased to see a strong customer response to Old Navy’s product
assortment, which continues to drive positive momentum at our
largest brand,” said Sabrina Simmons, chief financial officer, Gap
Inc.
September Sales Results
Gap Inc.’s comparable sales for September 2016 were down 3
percent versus a 1 percent decrease last year. The company
estimated that the fire which occurred in a building on its
Fishkill, New York distribution center campus negatively impacted
Gap Inc.’s September 2016 comparable sales by approximately 3
percentage points.
The company noted that September merchandise margin rates
actualized significantly higher than previously forecasted, which
more than offset the estimated earnings impact from lost sales and
increased logistics costs during the month that resulted from the
Fishkill distribution center fire.
Comparable sales by global brand for September 2016 were as
follows:
- Gap Global: negative 10 percent,
including an estimated negative impact from the Fishkill
distribution center fire of approximately 5 percentage points,
versus flat last year
- Banana Republic Global: negative
9 percent, including an estimated negative impact from the Fishkill
distribution center fire of approximately 3 percentage points,
versus negative 10 percent last year
- Old Navy Global: positive 4
percent, including an estimated negative impact from the Fishkill
distribution center fire of approximately 2 percentage points,
versus positive 4 percent last year
The company also noted that as a result of the Fishkill
distribution center fire, it expects a negative impact of
approximately 3 percentage points to Gap Inc.’s October 2016
comparable sales and a negative impact to comparable sales results
in the fourth quarter of fiscal year 2016.
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 October 6, 2016 and
available for replay until 1:15 p.m. Pacific Time on October 14,
2016.
October Sales
The company will report October sales at 1:15pm Pacific Time on
Monday, November 7, 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:
- the impact of the Fishkill distribution
center fire on comparable sales results for October 2016 and the
fourth quarter of fiscal year 2016.
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 changes in global
economic conditions or consumer spending patterns could adversely
impact our results of operations;
- the highly competitive nature of our
business in the United States and internationally;
- the risk that if we are unable to
manage our inventory effectively, our gross margins will be
adversely affected; and
- the risk that comparable sales and
margins will experience fluctuations.
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 30, 2016, as well as
the company’s subsequent filings with the Securities and Exchange
Commission.
These forward-looking statements are based on information as of
October 6, 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, about 450
franchise stores, and e-commerce sites. For more information,
please visit www.gapinc.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20161006006362/en/
Gap Inc.Investor Relations Contact:Tina Romani,
415-427-5264Investor_relations@gap.comorMedia Relations
Contact:Jennifer Poppers, 415-427-1729Press@gap.com
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