Gap Inc. Posts Mixed Q1 Sales Performance

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Gap Inc.San Francisco–Gap Inc. has booked a mixed sales performance in the first-quarter, with net sales growth but a slight fall in comparable store sales.

The  retailer, which operates about 3,100 stores, said net sales reached $3.77 billion in the quarter, compared to $3.73 billion in the same period last year.

But comparable store sales edged down 1%, with a 5% decline at Gap, a 1% fall at Banana Republic, while Old Navy recorded a 1% increase.

For April, however, comparable store sales were up 9%, helped by a 3% rise at Gap, a 7% increase at Banana Republic and an 18% jump at Old Navy. Net sales grew 10% to $1.33 billion from $1.21 billion last year.

“We are pleased with our execution overall in April, especially at Old Navy,” said Chairman/CEO Glenn Murphy.
Gap Inc. expects first-quarter diluted earnings per share to be 56 to 57 cents, while gross margins are forecast to fall less than the year-over-year decline in the fourth quarter of last year.