Gap posts fourth straight quarter of comp-sales growth
Gap Inc. topped analysts’ estimates in the third quarter as its turnaround efforts appear to be paying off.
The nation's largest apparel retailer posted net sales of $3.84 billion in the quarter, up from $3.80 billion in the year-ago period. Analysts had forecast sales of $3.76 billion.
Gap's total same-store sales rose 3%, its fourth consecutive quarter of positive sales growth. By brand, same-store sales rose 4% at Old Navy and 1% at Gap, and decreased 1% at Banana Republic.
The company reported profit of $228 million, or 58 cents a share excluding some items, down from 60 cents a share in the year-ago period. Analysts had expected earnings of 54 cents a share.
In September, Gap announced it was shifting its focus to its "growth brands" of Old Navy and Athleta.
“We continue to make progress against the balanced growth strategy we outlined in September, driving efficiency at our more mature brands, while growing our footprint in the value and active space, and investing in our online and mobile experience,” said CEO Art Peck.
Gap raised its reported diluted earnings per share guidance for fiscal year 2017 to be in the range of $2.18 to $2.22. Adjusted to exclude the second quarter benefit from insurance proceeds related to the Fishkill fire of about $0.10, the company now expects adjusted diluted earnings per share to be in the range of $2.08 to $2.12.
The company ended the third quarter with 3,639 store locations in 46 countries, of which 3,193 were company-operated.
The nation's largest apparel retailer posted net sales of $3.84 billion in the quarter, up from $3.80 billion in the year-ago period. Analysts had forecast sales of $3.76 billion.
Gap's total same-store sales rose 3%, its fourth consecutive quarter of positive sales growth. By brand, same-store sales rose 4% at Old Navy and 1% at Gap, and decreased 1% at Banana Republic.
The company reported profit of $228 million, or 58 cents a share excluding some items, down from 60 cents a share in the year-ago period. Analysts had expected earnings of 54 cents a share.
In September, Gap announced it was shifting its focus to its "growth brands" of Old Navy and Athleta.
“We continue to make progress against the balanced growth strategy we outlined in September, driving efficiency at our more mature brands, while growing our footprint in the value and active space, and investing in our online and mobile experience,” said CEO Art Peck.
Gap raised its reported diluted earnings per share guidance for fiscal year 2017 to be in the range of $2.18 to $2.22. Adjusted to exclude the second quarter benefit from insurance proceeds related to the Fishkill fire of about $0.10, the company now expects adjusted diluted earnings per share to be in the range of $2.08 to $2.12.
The company ended the third quarter with 3,639 store locations in 46 countries, of which 3,193 were company-operated.