Gap April sales drop 11%, comp store sales down 16%
12 May '07
3 min read
Gap Inc reported net sales of $1.09 billion for the four-week period ended May 5, 2007, which represents an 11 percent decrease compared with net sales of $1.23 billion for the four-week period ended April 29, 2006. Due to the 53PrdP week in fiscal year 2006, April 2007 comparable store sales are compared to the four-week period ended May 6, 2006. The company's comparable store sales for April 2007 decreased 16 percent compared with a 3 percent decrease as reported for April 2006.
Comparable store sales by division for April 2007 were as follows: • Gap North America: negative 14 percent versus negative 2 percent last year • Banana Republic North America: negative 13 percent versus positive 1 percent last year • Old Navy North America: negative 20 percent versus negative 6 percent last year • International: negative 5 percent versus negative 3 percent last year
“Driven by the shift of Easter, our April results deteriorated as compared to March. In addition, our merchandise margins were significantly below last year largely because of clearance selling at Gap brand,” said Sabrina Simmons, senior vice president, corporate finance at Gap Inc. “That said, our overall comparable stores sales for the quarter taken as a whole were negative four compared to negative nine last year. Our management team remains committed to making the changes necessary to improve our performance going forward.”
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