Gap Inc.’s September Comp Sales Disappoint

Denim looks for fall at Gap stores

Denim looks for fall at Gap stores

San Francisco—Reporting Thursday after the close of markets, Gap Inc. gave a September sales report that disappointed analysts and Wall Street.

For the five weeks ended Oct. 5, the operator of Gap, Old Navy and Banana Republic stores said its comparable store sales fell 3% compared with a 1.6% increase that analysts’ estimate expected. Last September Gap Inc. reported a 6% increase in comp sales.

Total net sales were flat compared with September 2012 at about $1.46 billion.

“While September proved to be somewhat challenging, we remain steadfast in our commitment to deliver on our full-year goals,” said Glenn Murphy, chairman/ceo.

Comparable sales by retail division was: Gap Global negative 3% versus positive 3% last year; Banana Republic Global: negative 5% versus positive 4% last year; and,  Old Navy Global: negative 2% versus positive 10% last year

Gap Inc. had been performing well in recent months when many other retailers have been struggling. The company’s stock has risen some 28% this year, but it fell to its lowest point in six months with the comp store sales report.

Overall, September comparable store sales were down from last year and below upswings in recent months, according to reports from the few retailers who still release monthly sales figures on Thursday.

 

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Jeff Prine, Editor at Large, Accessories Magazine
Jeff returns as a regular contributor to Accessories magazine. Initially Jeff worked as senior editor at Accessories more than 20 years ago and his love of the industry has followed him until present. Since his tenure here, Jeff has continued to report jewelry, watch and other luxury goods trends as executive editor at Modern Jeweler magazine, fashion director at Lustre, and as contributor on products and trends for consumer and trade publications and websites. In addition to his editorial experience, Jeff also served as an adjunct instructor for accessories merchandising at Fashion Institute of Technology. jeffp@busjour.com