San Francisco–One analyst predicts a lack of newness in women’s apparel at Gap’s namesake global brand will weigh on the company’s overall comparable store sales results in June.
The specialty retailer saw comparable store sales edge up 1% during the four weeks to May 31. Banana Republic and Old Navy booked respective gains of 3% and 2%, while Gap Global reported a 3% comparable store sales decline.
Net sales reached $1.27 billion, up 4% from $1.22 billion in the same period last year, driven by heightened year-on-year promotions.
“We delivered a positive comp to start the second quarter, building on last May’s strong performance,” said Chairman/CEO Glenn Murphy.
FBR Capital Markets analyst Susan Anderson said Gap has started off the second-quarter ‘on plan’, with Old Navy and Banana Republic described as “bright spots that show continued positive momentum.”
But Anderson believes Gap’s global namesake brand continued to be weak, due to a lack of newness in the assortment. “While we are encouraged by the trajectory of Old Navy and Banana Republic, we believe that the Gap women’s assortment will continue to weigh on comps/margins until the fall.”
Gap Inc. remains one of less than 10 retailers who continue to report monthly sales.