Merchandise margins trends reduces Gap Inc Sept sales
07 Oct '05
2 min read
World's largest specialty retailer Gap Inc reported net sales of $1.41 billion for the five-week period ended October 1, 2005, which represents a 3 percent decrease compared with net sales of $1.45 billion for the same period ended October 2, 2004. The company's comparable store sales for September 2005 decreased 6 percent compared with a 3 percent decrease in September 2004.
Comparable store sales by division for September 2005 were as follows:
-- Gap North America: negative 3 percent versus negative 2 percent last year -- Gap International: negative 13 percent versus negative 10 percent last year -- Banana Republic North America: negative 7 percent versus positive 6 percent last year -- Old Navy North America: negative 7 percent versus negative 6 percent last year
'September sales results were very disappointing as they faced continued challenges with traffic and product performance across all brands,' said Sabrina Simmons, Senior Vice President, Treasury and Investor Relations. Commenting on September business, Simmons added, 'Due to the significant miss in unit sales, merchandise margins through September are trending substantially below last year and they expect increased margin pressure in October as they work to clear product.'
Year-to-date net sales of $9.9 billion for the 35 weeks ended October 1, 2005, decreased 1 percent compared with net sales of $10.1 billion for the same period ended October 2, 2004. The company's year-to-date comparable store sales decreased 5 percent compared with a 2 percent increase in the prior year.
As of October 1, 2005, Gap Inc operated 3,082 store locations compared with 3,038 store locations last year.Every day, they look for new ways to connect with customers around the world, provide value to their shareholders and make a positive contribution in the communities where company do business.
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