The Gap Inc.
) reported better-than-expected Nov 2013 comparable-store sales
(comps) results, benefiting from the calendar shift that moved
Thanksgiving and Black Friday weekend sales into November this
Gap posted comps increase of 2% for Nov 2013, compared with a 3%
increase for the 4 weeks ended Nov 24, 2012. Brand-wise, the
company registered improved comps performance at Gap and Old
Navy, while Banana Republic reported negative comps.
Comps at Gap Global rose 2% compared with a 4% increase in the
prior-year period. Old Navy Global's comps increased 3% versus a
1% increase last year. However, comps at Banana Republic Global
inched down 1%, as against a 3% rise recorded last year.
Net sales for the four-week period came at $1.63 billion, up 8%
from $1.52 billion during the four-week period ended Nov 24,
2012. The company's improved top-line results also reflected its
ability to enhance customers' shopping experience in all mediums
including stores, online or on their mobile devices.
Amid weaker-than-expected November comps displayed by most retail
chains, Gap was able to keep heads up by inducing shoppers with
strong promotions and trendy merchandise. Additionally, the
company gained from recording early holiday sales on Thanksgiving
night against the traditional start of the holiday season on
Black Friday. The company opened nearly half of its stores across
the country on Thanksgiving.
On the other hand, comps of retailers like
The Buckle Inc.
L Brands Inc.
Costco Wholesale Corp.
) were below analyst expectations. Costco posted comparable-store
sales growth of 2.0%, while comps for L Brands and Buckle
declined 5.0% and 0.6%, respectively, for the month of November.
Gap currently carries a Zacks Rank #3 (Hold) and is scheduled to
release its December sales results on Jan 9, 2014.
BUCKLE INC (BKE): Free Stock Analysis Report
COSTCO WHOLE CP (COST): Free Stock Analysis
GAP INC (GPS): Free Stock Analysis Report
L BRANDS INC (LB): Free Stock Analysis Report
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