Gap international sales slide continues
Stephen Sunnucks facing challenge
The rate of sales decline in Gap’s international business increased in April, setting a stiff challenge for Stephen Sunnucks, the fashion retailer’s newly appointed European president.
The four weeks to April 30 saw Gap International record a same store sales decline of 12 per cent compared to a 5 per cent fall in April last year. This was steeper than the rate of decline across the 13 weeks to April 30, the first quarter of Gap’s financial year, which saw international same store sales fall by 6 per cent.
Sunnucks, who has been appointed to the newly created position of President of Europe, Gap International, was chief executive of fashion retailer New Look until last year. He is reported to be considering bringing Gap’s other US brands, Old Navy and Banana Republic, to Europe.
Gap’s total sales for April were $1.2 bn, a 2 per cent fall on April last year. Total same store sales for the month decreased by 5 per cent, with Gap North America and Banana Republic both recording same store sales declines, and Old Navy same store sales flat.
Sabrina Simmons, senior vice president, said: “In April, the clearance of remaining spring merchandise put pressure on our merchandise margins, which resulted in merchandise margins significantly below those of April last year.”
For the first quarter, total company sales were $3.6bn, a 1 per cent fall, while first quarter comparable store sales decreased by 4 per cent.
