Gap, Inc. (GPS) March Comps Fell 6%, Missing Expectations

Gap Inc. (NYSE: GPS) reported that net sales for the five-week period ended April 2, 2016 were $1.43 billion compared with net sales of $1.53 billion for the five-week period ended April 4, 2015.

“While March proved challenging, we remain focused on taking the necessary steps to improve results across the portfolio throughout the year," said Sabrina Simmons, chief financial officer, Gap Inc.

March Comparable Sales Results

Gap Inc.’s comparable sales for March 2016 were down 6 percent versus a 2 percent increase last year. (NOTE: The Street was looking for an increase of 2%.) Comparable sales by global brand for March 2016 were as follows:

• Gap Global: negative 3 percent versus negative 7 percent last year
• Banana Republic Global: negative 14 percent versus negative 3 percent last year
• Old Navy Global: negative 6 percent versus positive 14 percent last year

The company noted that it is entering April with more inventory than planned which the company expects will pressure its gross margin rate for the first quarter of fiscal year 2016.

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 1:15 p.m. Pacific Time on April 7, 2016 and available for replay until 1:15 p.m. Pacific Time on April 15, 2016.

April Sales

The company will report April sales at 1:15 p.m. Pacific Time on Monday, May 9, 2016.

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