) registered a 2% decline in comparable store sales (comps) for the
four-week period ended April 28, 2012, versus an increase of 8% in
the prior-year comparable period.
For the first quarter ended April 28, 2012, the company reported
a 4% rise in comparable store sales against a 3% decline in the
first quarter of 2011.
Net sales in April 2012 totaled $1.15 billion, flat compared to
the prior-year period. Net sales for the first quarter jumped 6%
year over year to $3.49 billion. The spike in first-quarter sales
resulted from continued strong performance of the spring products
across all of the company's brands.
Comps for the month of April 2012 and the first quarter of 2012
remained positive at all of Gap's segments, except
April comps at Banana Republic North America inched up 1% in
contrast to an 11% increase recorded in the prior-year period. The
company's same-store sales at Old Navy North America grew 6%
compared with a 14% increase in the year-ago period. Gap North
America's same-store sales were up 4% versus a 2% rise in the
prior-year period. However, results at its International segment
dipped 6% compared with a 1% decline in the prior-year period.
For the first quarter, comps at Banana Republic North America
rose 5% versus negative 1% comps in the year-ago quarter.
Similarly, comps at Old Navy North America and Gap North America
also recorded positive comps of 4% and 5%, respectively, as
compared to 2% and 3% declines last year. However, comps at the
International segment declined 4% compared with a 6% decline in the
Given the strong sales and comps performance, Gap has guided
earnings per share in the range of 44 cents - 46 cents for the
first quarter. The current Zacks Consensus Estimate for the first
quarter is 39 cents per share.
Furthermore, on the back of strong sales, the company trimmed
its first quarter for inventory dollars per store guidance to come
in below the earlier forecast, which was expected to be about flat
on a year-over-year basis.
Gap is scheduled to release its first-quarter 2012 earnings
results on Thursday, May 17, 2012.
On the same day, two other Apparel store retailers
Ross Stores Inc.
) reported positive same-store sales for the month of April 2012.
Comps growth at Ross was 7% in April, while Nordstrom recorded a
We believe that Gap's long-term strategic moves along with
disciplined cost management measures will not only provide
financial flexibility, but will also help to drive value
proposition. Moreover, Gap's globally recognized brands complement
one another, enabling it to leverage its position in the
Currently, Gap's shares maintain a Zacks #2 Rank, which
translates into a short-term Buy rating. Our long-term
recommendation on the stock remains Neutral.
GAP INC (GPS): Free Stock Analysis Report
NORDSTROM INC (JWN): Free Stock Analysis Report
ROSS STORES (ROST): Free Stock Analysis Report
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