June comparable-store sales (comps) for the apparel retailing
) fell 2% compared with the 7% growth registered for the 5 weeks
ended Jul 6, 2013, owing to a decline in comps at its namesake and
Banana Republic stores, offset by an improvement in Old Navy comps.
Unexpected decline in the company's June comps surprised the
investor community as comps results for most retailers fared well
in June. Consequently, Gap shares suffered a 1.29% decline during
yesterday's afterhours trading session.
Some retailers with better-than-expected comps growth in June
Rite Aid Corp.
Costco Wholesale Corp.
) - which reported comps increase of 3.1%, 3.9% and 6.0%,
respectively. The improved June results were mostly attributed to a
rise in traffic probably due to the positive economic factors like
an improved job scenario and consumer credit as well as heavy
promotions and favorable weather.
Coming back to Gap's sales results, net sales totaled $1.54 billion
for the 5 weeks ended Jul 5, 2014, up 1% compared with the
prior-year period sales of $1.53 billion.
Global brand-wise, performance at the company's namesake brand and
Banana Republic were disappointing while the Old Navy brand
delivered stellar results. Old Navy Global's comps rose 7% versus a
13% increase in Jun 2013, while both Gap Global and Banana Republic
Global posted a 7% decline, as against 5% and 1% comps growth,
respectively, in the year-ago period.
Last month, the company reported comps increase of 1% for the 4
weeks ended May 31, 2014 compared with 7% growth registered for the
4 weeks ended Jun 1, 2013, driven by strong results at its Banana
Republic and Old Navy stores. Moreover, net sales in May totaled
$1.27 billion, up 4% compared with the prior-year period sales of
This Zacks Rank #2 (Buy) company is scheduled to release its sales
results for July on Aug 7, 2014.
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