Gap, Inc. (NYSE: GPS) reported that net sales for the four-week period ended October 31, 2015 were $1.20 billion compared with net sales of $1.26 billion for the four-week period ended November 1, 2014. For the third quarter of fiscal year 2015, Gap Inc.’s net sales decreased 3 percent to $3.86 billion compared with $3.97 billion for the third quarter of last year.

On a constant currency basis, net sales for the third quarter of fiscal year 2015 were 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 third quarter of fiscal year 2015 by about $98 million, primarily due to the weakening Japanese yen and Canadian dollar.

“With fall behind us, the teams across our portfolio are focused on strong execution for the holiday season," said Sabrina Simmons, chief financial officer, Gap Inc.

October Comparable Sales Results

Gap Inc.’s comparable sales for October 2015 were down 3 percent versus a 3 percent decrease last year. Comparable sales by global brand for October 2015 were as follows:

• Gap Global: negative 4 percent versus negative 7 percent last year
• Banana Republic Global: negative 15 percent versus negative 2 percent last year
• Old Navy Global: positive 2 percent versus flat last year

Third Quarter Comparable Sales Results

Gap Inc.’s comparable sales for the third quarter of fiscal year 2015 were down 2 percent versus a 2 percent decrease last year. (The Street was looking for a decline of 0.4 percent.) Comparable sales by global brand for the third quarter of fiscal year 2015 were as follows:

• Gap Global: negative 4 percent versus negative 5 percent last year
• Banana Republic Global: negative 12 percent versus flat last year
• Old Navy Global: positive 4 percent versus positive 1 percent last year

Third Quarter Guidance

The company expects its adjusted diluted earnings per share to be in the range of $0.62 to $0.63, excluding the negative impact from the previously announced strategic actions, which was about $0.025 for the third quarter of fiscal year 2015. 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 Q3 EPS of $0.66.

Additionally, the company noted that it now expects year-over-year inventory dollars per store at the end of the third quarter of fiscal year 2015 to be slightly lower than the guidance provided in the company’s second quarter fiscal year 2015 earnings press release.

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.

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 November 9, 2015 and available for replay until 1:15 p.m. Pacific Time on November 13, 2015.