Gap, Inc. (NYSE: GPS) reported that net sales for the four-week period ended August 1, 2015 were $1.12 billion compared with net sales of $1.17 billion for the four-week period ended August 2, 2014. For the second quarter of fiscal year 2015, Gap Inc.’s net sales decreased 2 percent to $3.90 billion compared with $3.98 billion for the second quarter last year.

*** The Street was looking for Q2 revenue of $3.97 billion.

On a constant currency basis, net sales for the second quarter of fiscal year 2015 were about flat versus last year.1 The company noted that the translation of foreign currencies into U.S. dollars negatively impacted the company’s reported net sales for the second quarter of fiscal year 2015 by about $100 million, primarily due to the weakening Japanese yen and Canadian dollar.

“We’re pleased that Old Navy delivered another consecutive quarter of growth, while we continued to make progress against previously announced strategic actions at Gap brand,” said Sabrina Simmons, chief financial officer, Gap Inc.

July Comparable Sales Results

Gap Inc. comparable sales for July 2015 were down 3 percent versus a 2 percent increase last year. Comparable sales by global brand for July 2015 were as follows:

• Gap Global: negative 7 percent versus negative 2 percent last year
• Banana Republic Global: negative 10 percent versus positive 6 percent last year
• Old Navy Global: positive 3 percent versus positive 3 percent last year

The company noted that tax-free holidays in several states shifted from July last year to August this year. In addition, the company noted that this year’s Labor Day holiday is one week later, as compared to last year.

Second Quarter Comparable Sales Results

Gap Inc. comparable sales for the second quarter of fiscal year 2015 were down 2 percent versus flat last year. Comparable sales by global brand for the second quarter of fiscal year 2015 were as follows:

• Gap Global: negative 6 percent versus negative 5 percent last year
• Banana Republic Global: negative 4 percent versus flat last year
• Old Navy Global: positive 3 percent versus positive 4 percent last year

1 In calculating the net sales change on a constant currency basis, current year foreign exchange rates are applied to both current year and prior year net sales. This is done to enhance the visibility of underlying sales trends, excluding the impact of foreign currency exchange rate fluctuations.

Second Quarter Guidance

The company noted that its second quarter fiscal year 2015 earnings per share range includes impacts associated with foreign currency fluctuations, West Coast port delays, and previously announced strategic actions primarily related to Gap brand.

Excluding the negative impact from the strategic actions, which was about $0.12, the company expects its adjusted diluted earnings per share to be in the range of $0.63 to $0.64 for the second quarter of fiscal year 2015.

On a reported basis, the company expects diluted earnings per share for the second quarter of fiscal year 2015 to be in the range of $0.51 to $0.52. Please see the reconciliation of adjusted diluted earnings per share, a non-GAAP financial measure, from the GAAP financial measure in the table at the end of this press release.

*** The Street sees Q2 EPS of $0.66.

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 August 10, 2015 and available for replay until 1:00 p.m. Pacific Time on August 14, 2015.