Fashion retailer
Gap Inc.
(
GPS
) posted flat comparable store sales (comps) for the five week
period ended June 30, 2012 versus a 1% increase witnessed in the
comparable prior-year period. This also compares with a 2% rise in
comps registered in May.
The company's June comps mainly benefited from the continued
positive trend in its North American business. Comps for the month
of June 2012 remained positive at all Gap's segments, except
International.
June comps at Banana Republic North America spiked 5% against a
3% increase recorded in the prior-year period. Gap North America's
same-store sales were up 4% versus a 1% dip recorded in the June
period last year. Results at its Old Navy North America segment
reflected a 1% rise in comps compared with a 2% increase in the
prior-year period.
However, comps at its International segment fully offset the
growth in other segments with comps dropping 14% compared with a 2%
rise seen in the year-ago period.
Year-to-date, comps increased 3% compared with a 2% decline
posted in the year-ago comparable period.
Net sales in June 2012 totaled $1.41 billion, up 2% from the
prior-year period sales of $1.38 billion. On a year-to-date basis,
the company posted net sales of $6.00 billion, reflecting a 5%
growth year over year from $5.73 billion.
Gap is scheduled to release its July 2012 sales results on
August 2, 2012.
On the same day, two other Apparel store retailers
Ross Stores Inc.
(
ROST
) and
Nordstrom Inc.
(
JWN
) reported positive same-store sales for the month of June 2012.
Comps growth at Ross was 7% in June, while Nordstrom recorded an
8.1% growth.
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
sector.
Currently, Gap's shares maintain a Zacks #3 Rank, which
translates into a short-term Hold 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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