SAN FRANCISCO, October 11 /CNW/ - Gap Inc. (NYSE: GPS) today reported net
sales of $1.43 billion for the five-week period ended October 6, 2007, which
represents a 3 percent decrease compared with net sales of $1.46 billion for
the five-week period ended September 30, 2006. Due to the 53rd week in fiscal
year 2006, September 2007 comparable store sales are compared to the five-week
period ended October 7, 2006. On this basis, the company's comparable store
sales for September 2007 decreased 7 percent compared with a 3 percent
decrease as reported in September 2006.
Comparable store sales by division for September 2007 were as follows:
-- Gap North America: negative 10 percent versus negative 5 percent last
-- Banana Republic North America: negative 2 percent versus positive 3
percent last year
-- Old Navy North America: negative 8 percent versus negative 3 percent
-- International: negative 2 percent versus negative 6 percent last year
"Our merchandise margins in September were in line with last year and we
are comfortable with our inventory levels, which we continue to manage tightly
heading into the important holiday season," said Sabrina Simmons, executive
vice president of Gap Inc. finance.
Year-to-date net sales of $9.85 billion for the thirty-five weeks ended
October 6, 2007, increased 1 percent compared with net sales of $9.76 billion
for the thirty-five weeks ended September 30, 2006. Due to the 53rd week in
fiscal year 2006, fiscal year 2007 year-to-date comparable store sales are
compared to the thirty-five week period ended October 7, 2006. On this basis,
the company's year-to-date comparable store sales decreased 4 percent,
compared with a 7 percent decrease as reported in the prior year.
For more detailed information, please call 1-800-GAP-NEWS to listen to
Gap Inc.'s monthly sales recording. International callers may call
The company will report October sales on November 8, 2007.
Third Quarter 2007 Earnings
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.
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
statements regarding 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; the risk
that the company will be unsuccessful in gauging fashion trends and changing
consumer preferences; the highly competitive nature of the company's business
in the U.S. and internationally and its dependence on consumer spending
patterns, which are influenced by numerous other factors; the risk that the
company will be unsuccessful in identifying and negotiating new store
locations effectively; the risk that comparable store sales and margins will
experience fluctuations; the risk that the company will be unsuccessful in
implementing its strategic, operating and people initiatives; the risk that
adverse changes in the company's credit ratings may have a negative impact on
its financing costs and structure in future periods; the risk that trade
matters, events causing disruptions in product shipments from China and other
foreign countries, or IT systems changes may disrupt the company's supply
chain or operations; and the risk that the company will not be successful in
defending various proceedings, lawsuits, disputes, claims, and audits; any of
which could impact net sales, costs and expenses, and/or planned strategies.
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 October
11, 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 Greg Rossiter,