Gap reports slower March sales
11 April 2011 10:20
Gap Inc has reported that March 2011 net sales decreased 8% compared with last year as shoppers reined in their spending.
Net sales for the five-week period ended April 2nd 2011 were $1.33 billion compared with net sales of $1.45 billion for the five-week period ended April 3rd 2010. Comparable sales for March 2011, which include the associated comparable online sales, were down 10% compared with an 11% increase for March 2010.
"Our overall March performance was impacted by the tragic events in Japan, as well as the Easter shift into late April," said Glenn Murphy, chairman and chief executive officer of Gap Inc. "Our company has operated in Japan for more than 15 years, with over 150 stores today, so the devastating earthquake touched all of us at Gap Inc."
"Looking ahead, we remain intensely focused on April and delivering on our full year strategies," Mr Murphy added.
Gap anticipates that the events in Japan will negatively impact its first-quarter diluted earnings per share by about $0.04.
Comparable sales for March 2011, including the associated comparable online sales, were as follows:
Gap North America: negative 9% versus positive 12% last year; Banana Republic North America: negative 8% versus positive 10% last year, Old Navy North America: negative 12% versus positive 13% last year and International: negative 9% versus positive 5% last year.
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