Gap reports decrease in October net sales

REPORT_ Gap reported that its net sales for the four-week period ended November 1, 2014 were 1.26 billion dollars compared with net sales of 1.29 billion dollars for the four-week period ended November 2, 2013. For the third quarter of fiscal year 2014, Gap’s net sales were 3.97 billion dollars compared with 3.98 billion dollars for the third quarter last year.

“While we were disappointed in our October sales results, particularly at Gap, we look forward to presenting our improved product collections for the holiday season across all our brands,” said Glenn Murphy, Chairman and Chief Executive Officer, Gap.

Gap’s comparable sales for October 2014 were down 3 percent versus a 4 percent increase last year. Comparable sales Gap Global were negative 7 percent versus positive 5 percent last year, Banana Republic Global, negative 2 percent versus positive 1 percent last year and Old Navy Global, flat versus positive 2 percent last year.

Gap’s comparable sales for the third quarter of fiscal year 2014 were down 2 percent versus a 1 percent increase last year. Comparable sales at Gap Global were negative 5 percent versus positive 1 percent last year, Banana Republic Global, flat versus negative 1 percent last year and at Old Navy Global, positive 1 percent versus flat last year.

For the third quarter of fiscal year 2014, the company expects diluted earnings per share to be in the range of 0.78 dollars to 0.79 dollars compared to diluted earnings per share of 0.72 dollars for the third quarter of fiscal year 2013. The company noted that for the third quarter fiscal year 2014 it expects both gross margin rate and operating expenses to be better compared to guidance given with the company’s September 2014 sales announcement. Gap will release its third quarter earnings results on November 20, 2014 and November sales on December 4, 2014.