GAP INC REPORTS MAJOR DECREASE IN JANUARY SALES

Gap Inc. has reported a significant decrease in net sales for the four-week period ended January 30, 2016 of $813 million compared with net sales of $888 million for the four-week period ended January 31, 2015. For the entire fourth quarter of fiscal year 2015, Gap Inc.’s net sales were $4.39 billion compared with $4.71 billion for the fourth quarter last year.

Moreover, in January, Gap Inc.’s comparable sales for January 2016 were down 8 percent versus negative 3 percent last year. Broken down by brand, Gap Global was negative 6 percent versus negative 9 percent last year; Banana Republic Global was negative 17 percent versus positive 2 percent last year; and Old Navy Global was negative 6 percent versus positive 3 percent last year. All three brands also experienced negative fourth-quarter sales.

The company narrowed its full-year adjusted diluted earnings per share guidance range for fiscal year 2015 to $2.41 to $2.42, excluding the one-time negative impact from the previously announced strategic actions of about $0.20 per diluted share, for fiscal year 2015. For the fourth quarter of fiscal year 2015, the company expects adjusted diluted earnings per share to be in the range of $0.56 to $0.57.
A full report will be issued on February 25.