Gap Inc reports decrement in same-store sales in June
07 Jul '06
2 min read
Clothing retailer Gap Inc (GPS) reported net sales of $1.51 billion for the five-week period ended July 1, 2006, which represents a 1 percent decrease compared with net sales of $1.52 billion for the same period ended July 2, 2005.
The company's comparable store sales for June 2006 decreased 6 percent compared with flat comparable store sales in June 2005.
Comparable store sales by division for June 2006 were as follows:
• Gap North America: negative 4 percent versus positive 3 percent last year
• Banana Republic North America: negative 4 percent versus negative 6 percent last year
• Old Navy North America: negative 6 percent versus flat last year
• Gap International: negative 14 percent versus positive 1 percent last year
“June was a transitional month as all of our brands worked to clear summer merchandise, and as we expected our merchandise margins continued to be significantly below last year,” said Sabrina Simmons, Senior Vice President, Treasury and Investor Relations. “We expect that merchandise margins will continue to experience pressure in July as we clear remaining summer items for the arrival of fall merchandise late this month.”
Year-to-date net sales of $6.1 billion for the 22 weeks ended July 1, 2006, decreased 3 percent compared with net sales of $6.3 billion for the same period ended July 2, 2005. The company's year-to-date comparable store sales decreased 8 percent compared with a 4 percent decrease in the prior year.
The company reiterated that it expects inventory per square foot at the end of the second quarter to be flat compared to the prior year.
As of July 1, 2006, Gap Inc operated 3,080 store locations compared with 3,024 store locations last year.
marketing@alchempro.com
