Gap sales slide continues
Tough January for fashion retailer
Gap has continued to find trading tough, reporting a 7 per cent decline in same store sales during January.
The fall was worse than the 0.5 per cent decline forecast by the clothing retailer. Only the group’s Banana Republic chain bucked the trend, recording a 7 per cent same store sales increase for the month. Gap US sales declined by 6 per cent, Gap International fell by 8 per cent, and the Old Navy chain by 13 per cent. Total sales for the four weeks to January 29 declined by 5 per cent to $891m.
Sabrina Simmons, senior vice president of treasury and investor relations, said: “Although overall sales for January were disappointing, we were pleased that total company merchandise margins and regular priced selling were above last year.”
[img r]old-navy.jpg[/img]Across the fourth quarter, total company sales were flat at $4.9bn, with same store sales own 3 per cent, with Gap US same store sales flat and Gap International sale down 8 per cent across the quarter. Banana Republic same store sales were down 1 per cent and Old Navy down 4 per cent versus positive 4 percent last year.
In 52 weeks to January 29, total group sales were up 3 per cent to $16.3bn, with comparable store sales flat compared with an increase of 7 per cent last year.
