Gap Inc.’s April Comp and Q1 Sales Beat Forecasts

In Industry News, Reports, What's New by Jeff PrineLeave a Comment

Gap Inc.San Francisco—Buoyed by sales at its Gap and Old Navy stores, Gap Inc. reported Thursday afternoon April comparable store sales and a first quarter sales forecast better than analysts had expected.

The retail giant remains one of the few majors who still report monthly sales forecasts, but chooses to release them at the end of the day after other retailers released theirs.

Its April total comparable store sales rose 7% beating the 5.5% growth analysts’ estimates had expected. Total sales rose 5% in April to $1.21 billion.

“We are pleased with our sales performance this month, led by our largest brands, Gap and Old Navy,” said Glenn Murphy, chairman/ceo.

By division, Gap Global posted an 8% increase vs. a 1% increase a year ago. At Old Navy Global, comp sales were up 9% compared to a negative 6% last year. Banana Republic Global managed only a 1% increase in comp sales vs. flat growth last year.

Meanwhile, Gap Inc.’s shares rose in early trading today thanks to its stronger-than-expected first quarter guidance. The company said it expected first quarter earnings between 68 cents and 69 cents a share. That’s much better than the 56 cents a share analysts have been expecting.

Preliminary net sales for the first quarter, increased 7% to $3.73 billion compared with $3.49 billion for the first quarter last year. Analysts’ consensus expects $3.66 billion.

Gap Inc.’s first quarter results are officially released May 23.

 

 

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