SAN FRANCISCO, November 8 /CNW/ - Gap Inc. (NYSE: GPS) today reported net
sales of $1.23 billion for the four-week period ended November 3, 2007, which
represents a 1 percent decrease compared with net sales of $1.24 billion for
the four-week period ended October 28, 2006. Due to the 53rd week in fiscal
year 2006, October 2007 comparable store sales are compared to the four-week
period ended November 4, 2006. On this basis, the company's comparable store
sales for October 2007 decreased 8 percent compared with a 7 percent decrease
in October 2006.
Comparable store sales by division for October 2007 were as follows:
-- Gap North America: negative 7 percent versus negative 4 percent last
-- Banana Republic North America: negative 2 percent versus positive 2
percent last year
-- Old Navy North America: negative 11 percent versus negative 11
percent last year
-- International: negative 6 percent versus negative 8 percent last year
"While comparable store sales were down in October, merchandise margins
were significantly above last year," said Sabrina Simmons, executive vice
president of Gap Inc. finance. "The results reflect our stated strategy of
managing inventory tightly to support margin improvements."
Third Quarter Sales and Earnings Guidance
For the thirteen weeks ended November 3, 2007, total company net sales
were $3.85 billion, which is flat as compared to net sales of $3.85 billion
for the thirteen weeks ended October 28, 2006. Due to the 53rd week in fiscal
year 2006, third quarter comparable store sales are compared to the thirteen
weeks ended November 4, 2006. On this basis, the company's third quarter
comparable store sales decreased 5 percent compared with a decrease of 5
percent in the third quarter of the prior year.
Comparable store sales by division for the third quarter were as follows:
-- Gap North America: negative 6 percent versus negative 7 percent last
-- Banana Republic North America: positive 1 percent versus positive 3
percent last year
-- Old Navy North America: negative 8 percent versus negative 7 percent
-- International: negative 4 percent versus negative 6 percent last year
For the third quarter of fiscal year 2007, Gap Inc. expects diluted
earnings per share to be $0.28 to $0.30, as the company continues to make
progress on its strategies of driving earnings with healthy margins and
controlling expenses. Third quarter earnings are benefiting from the absence
of last year's incremental marketing expense. The expected third quarter
earnings per share also includes about $0.01 of benefit relating to a
reduction of interest accruals resulting from tax audits and other tax
resolutions completed during the quarter.
The company reiterated that it expects the year-over-year percent change
in inventory per square foot to be down in the mid-single digits at the end of
the third quarter.
For more detailed information, please call 1-800-GAP-NEWS to listen to
Gap Inc.'s monthly sales recording. International callers may call
Gap Inc. will release its third quarter earnings via press release on
November 21, 2007, at 7:30 a.m. Pacific Time. In addition, the company will
host a summary of Gap Inc.'s third quarter results in a live conference call
and webcast at approximately 8:00 a.m. Pacific Time. The conference call can
be accessed by calling 800-374-0168 and international callers may dial
706-634-0994. The webcast can be accessed at www.gapinc.com.
The company will report November sales on December 6, 2007.
This press release and related recording contain forward-looking
statements within the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. All statements other than those that are purely
historical are forward-looking statements. Words such as "expect,"
"anticipate," "believe," "estimate," "intend," "plan," and similar expressions
also identify forward-looking statements. Forward-looking statements include
diluted earnings per share for the third quarter of fiscal year 2007 and
year-over-year change in inventory per square foot at the end of the third
quarter of fiscal 2007.
Because these forward-looking statements involve risks and uncertainties,
there are important factors that could cause the company's actual results to
differ materially from those in the forward-looking statements. These factors
include, without limitation, the following: the risk that additional
information may arise during the company's close process or as a result of
subsequent events that would require the company to make adjustments.
Additional information regarding factors that could cause results to differ
can be found in the company's Annual Report on Form 10-K for the fiscal year
ended February 3, 2007. Readers should also consult the company's quarterly
report on Form 10-Q for the fiscal quarter ended August 4, 2007.
These forward-looking statements are based on information as of November
8, 2007, and the company assumes no obligation to publicly update or revise
its forward-looking statements even if experience or future changes make it
clear that any projected results expressed or implied therein will not be
Gap Inc. Copyright Information
All recordings made on 800-GAP-NEWS have been recorded on behalf of Gap
Inc. and consist of copyrighted material. They may not be re-recorded,
reproduced, retransmitted or rebroadcast without Gap Inc.'s express written
permission. Your participation represents your consent to these terms and
conditions, which are governed under California law.
For further information:
For further information: Gap Inc. Investor Relations: Evan Price,
415-427-2161 or Media Relations: Kris Marubio, 415-427-1798