Gap Inc. (NYSE: GPS) reported that net sales for the four-week period ended July 30, 2016 were $1.10 billion compared with net sales of $1.12 billion for the four-week period ended August 1, 2015. For the second quarter of fiscal year 2016, Gap Inc.’s net sales were $3.85 billion compared with $3.90 billion for the second quarter last year.

“While performance varied during the quarter, we made progress on our streamlining initiatives and continued to see signs of improvement in our larger brands,” said Sabrina Simmons, chief financial officer, Gap Inc.

July Comparable Sales Results

Gap Inc. comparable sales for July 2016 were down 4 percent versus a 3 percent decrease last year. Comparable sales by global brand for July 2016 were as follows:

• Gap Global: negative 4 percent versus negative 7 percent last year. (The Street was looking for a drop of 1 percent.)
• Banana Republic Global: negative 14 percent versus negative 10 percent last year
• Old Navy Global: flat versus positive 3 percent last year

Second Quarter Comparable Sales Results

Gap Inc. comparable sales for the second quarter of fiscal year 2016 were down 2 percent versus a 2 percent decrease last year. Comparable sales by global brand for the second quarter of fiscal year 2016 were as follows:

• Gap Global: negative 3 percent versus negative 6 percent last year
• Banana Republic Global: negative 9 percent versus negative 4 percent last year
• Old Navy Global: flat versus positive 3 percent last year

Second Quarter Guidance

On a reported basis, the company expects its diluted earnings per share for the second quarter of fiscal year 2016 to be in the range of $0.30 to $0.31.

Excluding the negative impact associated with its previously announced store closure and streamlining measures, which is approximately $0.28 and includes the impact from a higher tax rate, the company expects its adjusted diluted second quarter fiscal year 2016 earnings per share to be in the range of $0.58 to $0.59. 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 $0.48.

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 August 8, 2016 and available for replay until 1:15 p.m. Pacific Time on August 12, 2016.