Gap April net sales decline, updates Q1 outlook

Gap April net sales stood at 1.21 billion dollars for the four-week period ended May 2, 2015, compared with net sales of 1.33 billion dollars for the four-week period ended May 3, 2014. For the first quarter of fiscal year 2015, Gap’s net sales decreased 3 percent to 3.66 billion dollars compared with 3.77 billion dollars for the first quarter last year.

The translation of net sales in foreign currencies into U.S. dollars negatively impacted the company’s reported sales for the first quarter of fiscal year 2015 by about 90 million dollars, primarily due to the weakening Japanese yen and Canadian dollar. On a constant currency basis, net sales for the first quarter decreased 1 percent compared with last year.

“Old Navy delivered another quarter of positive comps – building on its track record of three consecutive years of growth,” said Sabrina Simmons, Chief Financial Officer, Gap, adding, “We remain focused on driving improved performance across our other divisions.”

The earlier timing of the Easter holiday, as compared to last year, benefited the company’s March sales results and negatively impacted its April sales results. Gap’s comparable sales for April 2015 were down 12 percent versus positive 9 percent last year. Comparable sales by Gap Global were negative 15 percent versus positive 3 percent last year. Comparable sales at Banana Republic Global were negative 15 percent versus positive 7 percent last year and at Old Navy Global, negative 6 percent versus positive 18 percent last year.

Gap’s comparable sales for the first quarter were down 4 percent versus negative 1 percent last year. Comparable sales at Gap Global were negative 10 percent versus negative 5 percent last year, at Banana Republic Global, negative 8 percent versus negative 1 percent last year and Old Navy Global, positive 3 percent versus positive 1 percent last year. The company expects diluted earnings per share for the first quarter to be in the range of 0.55 dollars to 0.56 dollars. The company will release its first quarter earnings results on May 21, 2015.