Gap Inc. Reports October And Third Quarter Sales Results

Gap Inc. (NYSE: GPS) today reported that net sales for the four-week period ended October 29, 2016 were $1.20 billion, or flat when compared with the four-week period ended October 31, 2015. For the third quarter of fiscal year 2016, Gap Inc.'s net sales were $3.80 billion compared with $3.86 billion for the third quarter of last year.

"As we close out the quarter, we are pleased to see a continued positive customer response to our Old Navy product collections," said Sabrina Simmons, chief financial officer, Gap Inc.

October Comparable Sales Results

Gap Inc.'s comparable sales for October 2016 were down 1 percent versus a 3 percent decrease last year. The company estimated that the fire, which occurred in a building on its Fishkill, New York distribution center campus, negatively impacted Gap Inc.'s October 2016 comparable sales by approximately 3 percentage points.

Comparable sales by global brand for October 2016 were as follows:
  • Gap Global: negative 7 percent, including an estimated negative impact from the Fishkill distribution center fire of approximately 5 percentage points, versus negative 4 percent last year
  • Banana Republic Global: negative 4 percent, including an estimated negative impact from the Fishkill distribution center fire of approximately 4 percentage points, versus negative 15 percent last year
  • Old Navy Global: positive 3 percent, including an estimated negative impact from the Fishkill distribution center fire of approximately 1 percentage point, versus positive 2 percent last year

The company noted that October merchandise margin rates actualized significantly higher than previously expected, which more than offset the estimated earnings impact from lost sales and increased logistics costs during the month that resulted from the Fishkill distribution center fire.

Third Quarter Comparable Sales Results

Gap Inc.'s comparable sales for the third quarter of fiscal year 2016 were down 3 percent, including an estimated negative impact from the Fishkill distribution center fire of approximately 2 percentage points, versus a 2 percent decrease last year.

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