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Stephen Sunnucks Facing Challenge At Gap

By FashionUnited

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Gap has reported a further decline in international sales, proving tough times ahead for newly appointed European president Stephen Sunnucks.

For the month of April, same store sales slipped by 12 per cent compared to only 5 per cent for April last year. This was higher than anticipated and steeper than the rate of decline across the 13 weeks to April 30, the first quarter of Gap's financial year, which saw international same store sales fall by 6 per cent.

Sunnucks, who has been appointed to the newly created position of President of Europe, Gap International, was chief executive of fashion retailer New Look until last year. He is reported to be considering bringing Gap's other US brands, Old Navy and Banana Republic, to Europe.

Gap's total sales for April were $1.2 bn, a 2 per cent fall on April last year. Total same store sales for the month decreased by 5 per cent, with Gap North America and Banana Republic both recording same store sales declines, and Old Navy same store sales flat. Sabrina Simmons, senior vice president, said "In April, the clearance of remaining spring merchandise put pressure on our merchandise margins, which resulted in merchandise margins significantly below those of April last year."

For the first quarter, total company sales were $3.6bn, a 1 per cent fall, while first quarter comparable store sales decreased by 4 per cent.

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