Gap Inc. Reports Second Quarter And July Sales Results

Gap Inc. (NYSE: GPS) today reported that net sales for the second quarter of fiscal year 2013 increased 8 percent compared with the second quarter of fiscal year 2012, and that July 2013 net sales increased 5 percent compared with last year.

“We are pleased with our second quarter performance overall, and we’re focused on continuing our momentum as we move into the second half of the year,” said Glenn Murphy, chairman and chief executive officer of Gap Inc.

Net sales for the second quarter, which ended August 3, 2013, were $3.87 billion compared with $3.58 billion for the second quarter last year. In addition, net sales for the four-week period ended August 3, 2013 were $1.12 billion compared with net sales of $1.06 billion for the four-week period ended July 28, 2012.

Due to the 53 rd week in fiscal year 2012, comparable sales for July 2013 and the second quarter of fiscal year 2013, respectively, are compared to the four-week and 13-week periods ended August 4, 2012. On this basis, Gap Inc.’s comparable sales for July 2013 were up 1 percent compared with a 10 percent increase for July 2012, and the company’s second quarter comparable sales were up 5 percent compared with a 4 percent increase in the second quarter last year.

July Comparable Sales Results

Comparable sales by global brand for July 2013 were as follows:
  • Gap Global: positive 7 percent versus positive 10 percent last year
  • Banana Republic Global: negative 1 percent versus positive 8 percent last year
  • Old Navy Global: negative 5 percent versus positive 12 percent last year

Second Quarter Comparable Sales Results

Comparable sales by global brand for the second quarter of fiscal year 2013 were as follows:
  • Gap Global: positive 6 percent versus positive 3 percent last year
  • Banana Republic Global: negative 1 percent versus positive 6 percent last year
  • Old Navy Global: positive 6 percent versus positive 3 percent last year

Second Quarter Guidance

The company expects diluted earnings per share for the second quarter of fiscal year 2013 to be in the range of $0.62 to $0.64. This compares to diluted earnings per share for the second quarter of fiscal year 2012 of $0.49.

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