Gap (GPS) April Comps Up 7%; Boosts Q1 EPS Outlook
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Gap Inc. (NYSE: GPS) today reported net sales for the first quarter of fiscal year 2013 increased 7 percent compared with the first quarter of fiscal year 2012 and that April 2013 net sales increased 5 percent compared with last year.
“We are pleased with our sales performance this month, led by our largest brands, Gap and Old Navy,” said Glenn Murphy, chairman and chief executive officer of Gap Inc.
Net sales for the first quarter, which ended May 4, 2013, were $3.73 billion compared with $3.49 billion for the first quarter last year. In addition, net sales for the four-week period ended May 4, 2013 were $1.21 billion compared with net sales of $1.15 billion for the four-week period ended April 28, 2012.
Due to the 53rd week in fiscal year 2012, comparable sales for April 2013 and the first quarter of fiscal year 2013, respectively, are compared to the four-week and 13-week periods ended May 5, 2012. On this basis, the company’s comparable sales for April 2013 were up 7 percent compared with a 2 percent decrease for April 2012 and the company’s first quarter comparable sales were up 2 percent compared with a 4 percent increase in the first quarter last year.
Comparable sales for the first quarter of fiscal year 2013 were as follows:
* Gap Global: positive 3 percent versus positive 2 percent last year
* Banana Republic Global: flat versus positive 5 percent last year
* Old Navy Global: positive 3 percent versus positive 4 percent last year
First Quarter Guidance
The company expects diluted earnings per share for the first quarter of fiscal year 2013 to be in the range of $0.68 to $0.69. This compares to diluted earnings per share for the first quarter of fiscal year 2012 of $0.47.
*** The Street sees Q1 EPS of $0.56.
The fiscal year 2013 first quarter diluted earnings per share includes a benefit of about $0.04 related to the favorable resolution of tax matters in the quarter. Of this $0.04 benefit, about $0.02 is reflected in interest and $0.02 is reflected in the tax rate. Though the company experienced tax favorability in the first quarter, it continues to expect an effective tax rate of about 39 percent for the full year.
In addition to the tax benefit, the growth in earnings per share in the first quarter was positively impacted by the calendar shift created by the 53rd week in fiscal year 2012. The resulting earnings impact from this calendar shift was contemplated in the full year 2013 earnings per share guidance outlined on the company’s fourth quarter 2012 earnings conference call.
“We are pleased with our sales performance this month, led by our largest brands, Gap and Old Navy,” said Glenn Murphy, chairman and chief executive officer of Gap Inc.
Net sales for the first quarter, which ended May 4, 2013, were $3.73 billion compared with $3.49 billion for the first quarter last year. In addition, net sales for the four-week period ended May 4, 2013 were $1.21 billion compared with net sales of $1.15 billion for the four-week period ended April 28, 2012.
Due to the 53rd week in fiscal year 2012, comparable sales for April 2013 and the first quarter of fiscal year 2013, respectively, are compared to the four-week and 13-week periods ended May 5, 2012. On this basis, the company’s comparable sales for April 2013 were up 7 percent compared with a 2 percent decrease for April 2012 and the company’s first quarter comparable sales were up 2 percent compared with a 4 percent increase in the first quarter last year.
Comparable sales for the first quarter of fiscal year 2013 were as follows:
* Gap Global: positive 3 percent versus positive 2 percent last year
* Banana Republic Global: flat versus positive 5 percent last year
* Old Navy Global: positive 3 percent versus positive 4 percent last year
First Quarter Guidance
The company expects diluted earnings per share for the first quarter of fiscal year 2013 to be in the range of $0.68 to $0.69. This compares to diluted earnings per share for the first quarter of fiscal year 2012 of $0.47.
*** The Street sees Q1 EPS of $0.56.
The fiscal year 2013 first quarter diluted earnings per share includes a benefit of about $0.04 related to the favorable resolution of tax matters in the quarter. Of this $0.04 benefit, about $0.02 is reflected in interest and $0.02 is reflected in the tax rate. Though the company experienced tax favorability in the first quarter, it continues to expect an effective tax rate of about 39 percent for the full year.
In addition to the tax benefit, the growth in earnings per share in the first quarter was positively impacted by the calendar shift created by the 53rd week in fiscal year 2012. The resulting earnings impact from this calendar shift was contemplated in the full year 2013 earnings per share guidance outlined on the company’s fourth quarter 2012 earnings conference call.
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