Despite sales falling 7%, GPS reported its Q3 profit increased 3% from Q3 last year. The company also announced that they believe their initial earnings forecast is still correct.
GPS reported an 11% decline in total same store sales for the month of September, as Old Navy's same store sales fell 24%.
Gap Inc. reported second quarter net earnings per share of $0.32 while analysts had been expecting EPS of $0.30, as the company limited costs amidst declining sales.
Gap Inc. announced that the company's same store sales declined 11% across all its chains. In North America, the Gap, Old Navy and Banana Republic reported same store sales decreases of 6%, 8%, and 16% respectively, while international same store sales fell 9%.
Gap reported a 2% decline in companywide sales for the month of June, as comparable store sales fell 7% during the same period as shoppers moved away from specialty apparel retailers as the economic outlook in the U.S. remains bleak through summer 2008.
Gap continued to struggle in the month of May, as net sales fell 8% from the same period in 2007. Same store sales decreased 14% companywide, as Old Navy's same store sales fell 25%, Gap same store sales fell 7% and Banana Republic same store sales fell 5%. Analysts had been expecting a 15.9% decrease at Old Navy and a 4.2% decline at Banana Republic.
Gap announced that same store sales for the month of April decreased 6%, compared with a 16% decrease in April 2007 as the retailers struggles continued. However, part of the decrease is likely due to the Easter holiday season falling in March this year, rather than April.
The Gap, Inc. announced that for fiscal 2008, it expects diluted earnings per share (EPS) of $1.20-$1.27. According to Reuters Estimates, analysts on average are expecting the Company to report EPS of $1.10 for the same period.
Despite a difficult overall retail environment, Gap's yoy quarterly earnings grew 26% from last year's at a time when most retailers are reporting far more dismal figures (see [recent earnings], for instance). While quarterly sales growth were just shy of flat at negative 1%, significant cost reductions (lighter, nimbler advertising and better inventory management) led to much healthier margins than last year's. While there was a 5% decrease in comp sales from the previous quarter, it was flat with last year's quarter-to-quarter decrease. Gap concluded by raising its earnings forecast for the year, making it one of the few apparel retailers this quarter to do so.
Strong earnings in the second quarter and the beginning of its overhaul of company leadership put earnings at a steady climb upwards.
Gap moves to expand its international presence, agreeing to export its Gap and Banana Republic brands to Saudi Arabia and Turkey. The franchise agreement expects to see 90 new Gap stores and 20 new Banana Republic stores between 2008 and 2012.
Gap announced that 4Q profit fell 35%, and as a result shares fell nearly 11%
Talks of a possible leveraged buyout began when Gap hired Goldman Sachs,
Gap lowered the FY 2006 EPS estimate to $1.01 to $1.06 from $1.08 to $1.12, and as a result the stock
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