OLD NAVY HELPS GAP POST GAINS FOR FIRST QUARTER

Global retailer Gap, Inc. has reported financial results for the first quarter of fiscal year 2017.

The company post diluted earnings per share of $0.36 compared with diluted earnings per share of $0.32 in the first quarter of fiscal year 2016. Net sales for the first quarter of fiscal year 2017 were $3.4 billion, about flat to the first quarter of fiscal year 2016.

Gap Inc.’s comparable sales 2017 were up 2 percent versus a 5 percent decrease last year. As for brand, Old Navy Global was positive 8 percent versus negative 6 percent last year; Gap Global was negative 4 versus negative 3 percent last year; and Banana Republic Global was negative 4 percent versus negative 11 percent last year.

“We are pleased with our positive comp and earnings growth this quarter,” said Art Peck, president and CEO of Gap Inc. “We’ve made substantial improvements in product quality and fit, and our increasing responsive capabilities are enabling us to better react to trends and demand.”

Looking ahead, the company reaffirmed its full year diluted earnings per share guidance to be in the range of $1.95 to $2.05, and expects comparable sales for fiscal year 2017 to be flat to up slightly.

“While the retail environment continues to be challenging, we are focused on delivering the best possible product and customer experience, and our ability to leverage a portfolio of iconic brands and operating scale uniquely positions the company for long-term growth,” Peck continued.

In early morning trading on Friday, Gap’s stock was down over 4 percent.