Gap 2013 net sale increase 5 percent

REPORT_ Gap in its financial report for the fourth quarter and fiscal year 2013 said that its net sales increased 5 percent on a constant currency basis for fiscal year 2013. Reported net sales increased 497 million dollars to 16.15 billion dollars for the 2013 fiscal year

compared with net sales of 15.65 billion dollars for the 2012 fiscal year. The company’s comparable sales for fiscal year 2013 increased 2 percent compared with a 5 percent increase last year.

Delivering another consecutive year of double-digit earnings per share growth, the company increased earnings per share 18 percent to 2.74 dollars on a diluted basis for the 52 weeks ended February 1, 2014 compared with 2.33 dollars for the 53 weeks ended February 2, 2013.

“We

are pleased to deliver another year of profitable growth for our shareholders,” opined Glenn Murphy, Chairman and Chief Executive Officer of Gap. He further added saying, “Engaging customers across our multi-channel portfolio of brands positions us well on our path to winning in the global marketplace.”

Net sales for the 13 weeks ended February 1, 2014 or fourth quarter were 4.58 billion dollars, compared with 4.73 billion dollars for the 14 weeks ended February 2, 2013. The company’s fourth quarter comparable sales were up 1 percent compared with a 5 percent increase in the fourth quarter last year.

Demonstrating the company’s focus on creating a competitive advantage through innovative omni-channel capabilities, online net sales increased 21 percent to 2.26 billion dollars for fiscal year 2013. In fiscal year 2013, the company expanded its Gap store base in mainland China, opening 34 stores, for a total of 81 stores, inclusive of Gap outlet stores. The brand expects to open about 30 additional Gap stores in China during fiscal year 2014.

Continuing to grow its Old Navy brand globally, the company expects in fiscal year 2014 to debut Old Navy in China with about five stores and begin franchising Old Navy stores internationally, starting with the Philippines this March. In addition, Old Navy expanded its presence in Japan by opening 17 stores during fiscal year 2013 and plans to open about 25 new stores in Japan during fiscal year 2014. San Francisco-headquartered company’s Athleta brand ended fiscal year 2013 with 65 Athleta stores and expects to open about 30 additional US stores during fiscal year 2014.

Comparable sales by global brand for the 2013 fiscal year witnessed Gap Global, positive 3 percent versus positive 3 percent last year, Banana Republic Global, negative 1 percent versus positive 5 percent last year and Old Navy Global, positive 2 percent versus positive 6 percent last year.

For the fiscal year 2014 company expects earnings per share to be in the range of 2.90 dollars to 2.95 dollars. The company’s 2014 fiscal year guidance contemplates some of the expected impact from weakening foreign currencies. As a result, the company estimates its reported fiscal year 2014 earnings per share growth rate to be negatively impacted by about 5 percentage points at current exchange rates. At its midpoint, the company’s fiscal year 2014 guidance represents earnings per share growth of 7 percent on a reported basis; without this negative 5 percentage point impact, the company expects that the earnings per share growth would be in the double-digits.