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Gap posts positive Q3 results, raises outlook

Gap’s third quarter diluted earnings per share were 0.58 dollar, while total company comparable sales increased 3 percent versus a 1 percent decrease last year, which the company said, excluded an estimated negative impact from the Fishkill distribution center fire of approximately 2 percentage points. Net sales for the third quarter were 3.84 billion dollars compared with 3.80 billion dollars for the third quarter of fiscal year 2016.

“Today, we are happy to report our fourth consecutive quarter of positive comps, reflecting the continued momentum in key parts of our business,” said Art Peck, President and CEO, Gap, in a media statement.

Gap Global posts positive same-store sales growth

Comparable sales at Old Navy Global: positive 4 percent versus positive 4 percent last year, excluding an estimated negative impact from the Fishkill distribution center fire of approximately 1 percentage point.

Comparable sales at Gap Global were positive 1 percent versus negative 4 percent last year, excluding an estimated negative impact from the Fishkill distribution center fire of approximately 4 percentage points, while Banana Republic Global reported negative 1 percent comparable sales rise versus negative 6 percent last year, excluding an estimated negative impact from the Fishkill distribution center fire of approximately 2 percentage points.

Gap raises FY17 earnings guidance

The company has raised its reported diluted earnings per share guidance for fiscal year 2017 to be in the range of 2.18 dollars to 2.22 dollars. Adjusted to exclude the second quarter benefit from insurance proceeds related to the Fishkill fire of about 0.10 dollar, the company now expects adjusted diluted earnings per share to be in the range of 2.08 dollars to 2.12 dollars.

The company noted that foreign currency fluctuations negatively impacted earnings per share for the third quarter by an estimated 0.02 dollars or about 3 percentage points of earnings per share growth compared with the adjusted earnings per share for the third quarter of fiscal year 2016. The company now expects comparable sales for fiscal year 2017 to be up low-single-digits.

Gap paid a dividend of 0.23 dollar per share during the third quarter and in addition, on November 9, 2017, the company announced that its board of directors authorized a fourth quarter dividend of 0.23 dollar per share.

The company ended the quarter with 3,639 store locations in 46 countries, of which 3,193 were company-operated. The company now expects to close about 30 company-operated stores, net of openings and repositions.

Picture:Facebook/Gap