The positive-negative comparable store sales (comps) trend
continues for the fashion retailer
) as it posted a 2% rise in comps for the four week period ended
May 26, 2012 versus a 4% decline witnessed in the comparable
prior-year period. The positive comps in May mainly ride on the
favorable response that the company's summer collection received
from its customers. Year-to-date, comps increased 3% compared with
a 3% decline posted in the year-ago comparable period.
Last month, Gap had registered a 2% decline in comps (four-week
period ended April 28, 2012) against an 8% increase recorded in
Net sales in May 2012 totaled $1.10 billion, up 4% compared with
the prior-year period sales of $1.06 billion. Overall net sales in
the five months of 2012 (17 weeks ended May 26, 2012) jumped 5%
year over year to $4.59 billion.
Comps for the month of May 2012 remained positive at all of
Gap's segments, except Old Navy North.
May comps at Banana Republic North America spiked 8% in contrast
to a 6% decline recorded in the prior-year period. Gap North
America's same-store sales were up 6% versus a 4% dip seen in the
prior-year period. Results at its International segment rose 1%
compared with a 9% decline in the prior-year period. However,
same-store sales at Old Navy North America dipped 1%, flat compared
with the year-ago period.
Gap is scheduled to release its June 2012 sales results on July
On the same day, two other Apparel store retailers
Ross Stores Inc.
) reported positive same-store sales for the month of May 2012.
Comps growth at Ross was 8% in May, while Nordstrom recorded a 5.3%
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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