Gap, Inc. (GPS) April Comps Rose 9%; Guides Q1 EPS Above Views

Gap, Inc. (NYSE: GPS) reported that April net sales increased 10 percent to $1.33 billion for the four-week period ended May 3, 2014 versus $1.21 billion last year. Gap Inc.’s comparable sales for April 2014 were up 9 percent versus a 7 percent increase last year.

For the first quarter of fiscal year 2014, Gap Inc.’s net sales increased 1 percent to $3.77 billion versus $3.73 billion last year. The company’s comparable sales for the first quarter of fiscal year 2014 decreased 1 percent versus a 2 percent increase last year.

“We are pleased with our execution overall in April, especially at Old Navy,” said Glenn Murphy, chairman and chief executive officer, Gap Inc.

April Comparable Sales Results

Comparable sales by global brand for April 2014 were as follows:

• Gap Global: positive 3 percent versus positive 8 percent last year
• Banana Republic Global: positive 7 percent versus positive 1 percent last year
• Old Navy Global: positive 18 percent versus positive 9 percent last year

First Quarter Comparable Sales Results

Comparable sales by global brand for the first quarter of fiscal year 2014 were as follows:

• Gap Global: negative 5 percent versus positive 3 percent last year
• Banana Republic Global: negative 1 percent versus flat last year
• Old Navy Global: positive 1 percent versus positive 3 percent last year

First Quarter Guidance

The company expects diluted earnings per share for the first quarter of fiscal year 2014 to be in the range of $0.56 to $0.57.

*** The Street sees EPS of $0.53.

The company expects that for the first quarter of fiscal year 2014, gross margins will decline less than the year-over-year decline in the fourth quarter of fiscal year 2013. In addition, the company expects first quarter fiscal year 2014 operating expenses to be slightly above last year.

Additional insight into Gap Inc.’s sales performance is available by calling 1-800-GAP-NEWS (1-800-427-6397). International callers may call 706-902-4949. The recording will be available at approximately 1:00 p.m. Pacific Time on May 8, 2014 and available for replay until 1:00 p.m. Pacific Time on May 16, 2014.

First Quarter Earnings

Gap Inc. will release its first quarter earnings results via press release on May 22, 2014 at 1:00 p.m. Pacific Time. In addition, the company will host a summary of Gap Inc.’s first quarter results during a live conference call and webcast on May 22, 2014 from approximately 2:00 p.m. – 2:45 p.m. Pacific Time. During the first, second and third quarters, these calls will be approximately 45 minutes in duration, and the fourth quarter conference call will remain one hour in length.

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