This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Gap Inc. Reports Third Quarter Results

Stocks in this article: GPS

Gap Inc. (NYSE:GPS) today reported that third quarter diluted earnings per share increased 14 percent, to $0.72, compared with $0.63 last year, as the company continues to deliver on its goal of top-line and bottom-line growth. The company reaffirmed its estimate for full year 2013 diluted earnings per share to be in the range of $2.57 to $2.65.

Net sales for the third quarter, which ended November 2, 2013, increased 3 percent to $3.98 billion compared with $3.86 billion for the third quarter last year. Net sales increased 5 percent on a constant currency basis. In calculating net sales growth 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 business trends, excluding the impact of foreign currency exchange rate fluctuations.

“This quarter marks our seventh consecutive quarter of positive comp sales growth,” said Glenn Murphy, chairman and chief executive officer of Gap Inc. “We are pleased to maintain our momentum of growing sales and earnings per share this quarter.”

The company’s third quarter of fiscal 2013 comparable sales increased 1 percent versus a 6 percent increase last year. Due to the 53 rd week in fiscal year 2012, comparable sales for the third quarter of fiscal year 2013 are compared with the 13-week period ended November 3, 2012.

Additional Third Quarter 2013 Financial and Business Highlights

  • Operating margin expanded 100 basis points to 14.5 percent.
  • Increased online sales by 20 percent in the third quarter compared with last year, continuing to build upon the company’s online success and omni-channel strategies.
  • The company continued to expand its Gap store base in mainland China, opening 18 additional stores in the third quarter, for a total of 73 stores.
  • In line with its strategy to expand Old Navy internationally, the company ended the quarter with 14 Old Navy stores in Japan, on pace to open 15 to 20 stores for the year. The company also announced its intention to open its first franchise-operated Old Navy store in the Philippines in 2014.
  • The company continued to grow its Franchise business during the quarter with the addition of four markets – Brazil, Costa Rica, Hungary and Peru – now totaling more than 350 stores in over 40 global markets.
  • Gap Inc. opened 15 Athleta stores in the third quarter, for a total of 61 stores open to date, and the brand is on pace to end fiscal 2013 with about 65 stores.

Third Quarter 2013 Comparable Sales Results

Comparable sales by global brand for the third quarter of fiscal year 2013 were as follows:

  • Gap Global: positive 1 percent versus positive 4 percent last year
  • Banana Republic Global: negative 1 percent versus positive 5 percent last year
  • Old Navy Global: flat versus positive 9 percent last year

Third Quarter 2013 Net Sales Results

The following table details the company’s third quarter net sales:

($ in millions) Quarter Ended November 2, 2013

 

Gap Global

 

Old Navy Global

 

Banana Republic Global

 

Other (2)

 

Total

 

Percentage of Net Sales

U.S. (1) $ 960 $ 1,371 $ 572 $ 155 $ 3,058 77 %
Canada 111 126 60 1 298 7 %
Europe 199 21 220 6 %
Asia 282 20 37 339 8 %
Other regions   53     8     61 2 %
Total $ 1,605 $ 1,517 $ 698 $ 156 $ 3,976 100 %
 

($ in millions) Quarter Ended October 27, 2012

Gap Global

Old Navy Global

Banana Republic Global

Other (2)

Total

Percentage of Net Sales

U.S. (1) $ 966 $ 1,385 $ 572 $ 89 $ 3,012 78 %
Canada 102 126 60 288 8 %
Europe 187 19 206 5 %
Asia 264 3 39 306 8 %
Other regions   46     6     52 1 %
Total $ 1,565 $ 1,514 $ 696 $ 89 $ 3,864 100 %
 
(1) U.S. includes the United States, Puerto Rico, and Guam.
(2) Includes Piperlime, Athleta, and fiscal year 2013 includes Intermix.
 

Total online sales were $589 million for the thirteen weeks ended November 2, 2013 compared with $491 million for the third quarter last year.

1 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,310.22 -106.63 -0.61%
S&P 500 2,006.13 -15.12 -0.75%
NASDAQ 4,666.7070 -16.70 -0.36%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs