Comparable store sales rise at Gap North America in July
10 Aug '07
3 min read
Gap Inc reported net sales of $1.054 billion for the four-week period ended August 4, 2007, which is an increase of 1 percent compared to net sales of $1.047 billion for the four-week period ended July 29, 2006.
Due to the 53rd week in fiscal year 2006, July 2007 comparable store sales are compared to the four-week period ended August 5, 2006. On this basis, the company's comparable store sales for July 2007 decreased 7 percent compared with a 4 percent decrease as reported in July 2006.
"During July, we cleared through summer product at all three brands and total company merchandise margins were significantly above last year," said Sabrina Simmons, senior vice president, corporate finance at Gap Inc.
"However, sales at Old Navy were negatively impacted since we did not repeat two sales events, and fall product that was pulled forward into July did not resonate as customers remained focused on 'wear now' apparel."
For the thirteen weeks ended August 4, 2007, total company net sales were $3.69 billion, which is a decrease of 1 percent as compared to net sales of $3.72 billion for the thirteen weeks ended July 29, 2006.
Due to the 53rd week in fiscal year 2006, second quarter comparable store sales are compared to the thirteen weeks ended August 5, 2006. The company's second quarter comparable store sales decreased 5 percent compared with a decrease of 5 percent in the second quarter of the prior year.
As part of the company's efforts to streamline operations, about 1,100 positions were eliminated in the second quarter of fiscal year 2007, excluding Forth & Towne. In the second quarter of fiscal year 2007, the company recognized approximately $20 million of expenses on a pre-tax basis as a result of the cost reduction initiatives, primarily related to severance payments.
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