Gap Inc reported that net earnings for the first quarter, which ended April 29, 2006, decreased 17 percent versus prior year to $242 million, or $0.28 per share on a diluted basis, compared with $291 million, or $0.31 per share, for the same period last year.
First quarter net sales decreased 5 percent to $3.44 billion, compared with $3.63 billion for the same period last year. Comparable store sales decreased 9 percent, compared with a decrease of 4 percent in the same period last year.
"During the first quarter, we made progress in each of our brands to improve the product and store experience,” said Gap Inc President and CEO Paul Pressler.
“We remain confident in the strategies underway to turn around our business performance and look forward to seeing the progress reflected in our financial results in the second half of the year."
Additional Results and 2006 Outlook Although each of its brands made progress during the first quarter, the company continues to believe that the first half of the year will be challenging and reiterated that it expects comparable store sales to remain negative in the second quarter.
Earnings The company reiterated its guidance for fiscal year 2006 earnings per share of $1.23 to $1.27, which reflects pre-tax expenses of about $25 million related to the adoption of SFAS 123R. Cash and Debt
Dividends The company announced during the first quarter that it intended to increase its annual dividend per share by 78 percent from $0.18 to $0.32 for fiscal year 2006. It paid an $0.08 per share dividend in the first quarter of 2006.
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