Gap April sales drop 11%, comp store sales down 16%
12 May '07
3 min read
First Quarter Sales Results and Earnings Guidance: For the thirteen weeks ended May 5, 2007, total company net sales were $3.56 billion, which is an increase of 3 percent as compared to net sales of $3.44 billion for the thirteen weeks ended April 29, 2006. Due to the 53PrdP week in fiscal year 2006, first quarter comparable store sales are compared to the thirteen weeks ended May 6, 2006. The company's first quarter comparable store sales decreased 4 percent compared with a decrease of 9 percent in the first quarter of the prior year.
The company expects diluted earnings per share on a GAAP basis for the first quarter of fiscal year 2007 to be $0.20 to $0.22. This includes a benefit of about $0.01 from tax rate adjustments impacting the first quarter and about $37 million in expenses related to the planned closure of Forth & Towne in June 2007.
Excluding the Forth & Towne expenses, the company expects diluted earnings per share for the first quarter of fiscal year 2007 to be $0.23 to $0.25. Please see the reconciliation of expected earnings per share excluding the above expense, a non-GAAP financial measure, to a GAAP financial measure in the table at the end of this release.
The company reiterated that it expects year-over-year change in inventory per square foot to be flat at the end of the first quarter.
Comparable store sales by division for the first quarter were as follows: • Gap North America: negative 4 percent versus negative 8 percent last year • Banana Republic North America: negative 2 percent versus negative 5 percent last year • Old Navy North America: negative 5 percent versus negative 11 percent last year • International: negative 3 percent versus negative 11 percent last year
As of May 5, 2007, Gap Inc. operated 3,154 store locations compared with 3,070 store locations last year.
marketing@alchempro.com
