GAP REPORTS CONTINUED SALES DECLINE FOR SECOND QUARTER

Gap Inc. today reported that net sales for both the second quarter of fiscal year 2016, which ended on July 30, 2016, as well as for the four-week period ending on August 1, 2015.

For the second quarter of fiscal year 2016, Gap Inc.’s net sales were $3.85 billion compared with $3.90 billion for the second quarter last year, and comparable sales for the second quarter of fiscal year 2016 were down 2 percent versus a 2 percent decrease last year. On a reported basis, the company expects its diluted earnings per share for the second quarter of fiscal year 2016 to be in the range of $0.30 to $0.31.

Meanwhile, net sales were $1.10 billion compared with net sales of $1.12 billion for the four-week period ended August 1, 2015, while comparable sales were down 4 percent versus 3 percent last year.

In both cases, the company’s Banana Republic division was the biggest disappointment, with a negative 9 percent comparable sales for the quarter, and negative 14 percent for July, both worse than last year.

“While performance varied during the quarter, we made progress on our streamlining initiatives and continued to see signs of improvement in our larger brands,” said Sabrina Simmons, chief financial officer, Gap Inc.