The Gap Inc.
) posted a comparable-store sales (comps) decline of 3% for the
5-week period ended Oct 5, 2013, compared with a 6% rise for the
5 weeks ended Oct 6, 2012. The dip was mainly driven by comps
decline at the company's Gap Global, Banana Republic Global and
Old Navy Global brands.
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Brand-wise, comps performances at Gap Global were down 3%
compared with a 3% increase in the prior-year period. Comps at
Banana Republic Global dipped 5% compared with a 4% rise recorded
last year. Old Navy Global's comps slipped 2% versus a 10%
increase last year.
Gap's comps for the month were also below analysts' expectations
as consumers remain cautious with their spending habits due to
the increased economic uncertainty. Net sales in September
totaled $1.46 billion, almost flat compared to sales of $1.45
billion for the 5-week period ended on Sep 29, 2012.
The difference in the year-ago comparable periods for net sales
and comps is attributed to the 53rd week in fiscal 2012.
Apart from Gap, other store chain retailers that posted
comparable-store sales data for the month of September include
The Buckle Inc.
Stein Mart Inc.
). While Stein Mart delivered comps growth of 5.0%, Buckle
registered comps decline of 4.5% and comps for Zumiez were down
In September, comparable-store sales results for most retailers
were down due to the lack of new product launches that resulted
in a failure to attract customers who are hesitant to spend in an
uncertain economic environment. Higher tax rates, uncertainty
about the implementation of the Affordable Care Act and the first
government shutdown in 17 years are factors that are holding back
customers from spending.
Gap currently carries a Zacks Rank #3 (Hold) and is scheduled to
release its October sales results on Nov 7, 2013.