Gap Inc reported net sales of $2.4 billion for the five-week period ended December 31, 2005, which represents a 5 percent decrease compared with net sales of $2.6 billion for the same period ended January 1, 2005.
The company's comparable store sales for December 2005 drops 9 percent compared with a 1 percent decrease in December 2004.
"During December, traffic trends at all three brands continued to drive negative comparable store sales," said Sabrina Simmons, Senior Vice President, Treasury and Investor Relations. "However, we are pleased that fewer markdowns in the month resulted in merchandise margins slightly above those of last year."
Year-to-date net sales of $15.1 billion for the 48 weeks ended December 31, 2005 decreased 2 percent compared with net sales of $15.4 billion for the same period ended January 1, 2005. The company's year-to-date comparable store sales decreased 5 percent compared with a 1 percent increase in the prior year.
In addition, the company remains comfortable with the annual earnings per share guidance that it provided in its third quarter earnings release of $1.12 to $1.17, and through December, the company is trending to the upper-end of this range.
As of December 31, 2005, Gap Inc operated 3,126 store locations compared with 3,049 store locations last year.
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