Gap Inc March sales down 9%, comp store sales fall 13%
06 Apr '06
2 min read
Apparel retailer Gap Inc has reported net sales of $1.35 billion for the five-week period ended April 1st 2006, which represents a 9 percent decrease compared with net sales of $1.47 billion for the same period ended April 2nd 2005.
The company's same-store sales for March 2006 decreased 13 percent compared with a 4 percent decrease in March 2005.
Same-store sales by division for March 2006 were as follows:
-- Gap North America: negative 13 percent versus negative 1 percent last year
-- Banana Republic North America: negative 7 percent versus negative 1 percent last year
-- Old Navy North America: negative 15 percent versus negative 9 percent last year
-- Gap International: negative 16 percent versus positive 1 percent last year
Sabrina Simmons, Senior VP, Treasury and Investor Relations, said, "Our March performance reflects the challenges we face to increase the frequency of customer visits to our stores."
"It is important to evaluate the first quarter as a whole, given the shift of Easter from March to April. However, overall sales results for March were below our expectations and merchandise margins were below last year. Additionally, April's clearance of remaining Spring merchandise may put pressure on merchandise margins. As we've said in our previous guidance, we anticipate that total same-store sales will remain negative for the first half of this year," she added.
Year-to-date net sales of $2.21 billion for the nine weeks ended April 1st 2006, decreased 8 percent compared with net sales of $2.40 billion for the same period ended April 2nd 2005.
marketing@alchempro.com
