Gap authorises share buyback

US retail giant Gap Inc reported last week that its board of directors has authorised the repurchasing of an additional $250 million (GBP136 million) shares, effective immediately. Originally the company had issued a $750 share buyback programme. At present it has repurchased approximately 33 million shared for $686 million.

The shares will be repurchased over the next twelve months, at prices deemed appropriate by management. This means that repurchasing may take place on the open market at pre-approved times and prices. Gap has reduced its debt by more than $1.5 billion, which includes debt retirement in the third quarter. Last week the company reported sales of $1.4 billion for the four-week period ending 27 November. The amount remained unchanged from the same period last year.