Gap says sales trends up in July and 2Q
SAN FRANCISCO (AP) — Gap Inc. said Thursday that its companywide sales trends improved for the month of July and its second quarter as shoppers responded well to its lineup of summer products at its namesake and Old Navy stores.
The retailer, based in San Francisco, owns the Gap, Banana Republic, Old Navy, Piperlime, Athleta and Intermix brands.
Gap reported after the market closed Thursday that its revenue for the second quarter increased 8 percent to $3.87 billion. It expects to earn 62 to 64 cents per share for the quarter.
Analysts polled by FactSet, on average, were anticipating earnings of 59 cents per share on revenue of $3.8 billion.
The company also said that its total revenue for July increased 5 percent to $1.12 billion.
Gap said that its revenue from stores open at least a year, considered a key indicator of retail performance because it strips away the impact of recently opened or closed stores, increased 1 percent for the month as gains at its namesake brand offset a drop at Banana Republic and Old Navy. This is compared with a 10 percent increase in July of last year.
The July sales figures fell short of the 1.7 percent increase that analysts polled by Thomson Reuters were expecting.
Gap said that this same measure was up 5 percent for its second quarter, with gains in its Gap and Old Navy brands and a drop at Banana Republic.
The company has more than 3,100 company-operated stores and more than 300 franchise stores, along with its online shopping sites.
Shares of Gap Inc. added 62 cents to close regular trading at $45.52 but slipped 3 cents in after-hours trading.