Fire at distribution center cuts into Gap’s results

The fire is out, but its effects will linger.



Gap Inc. on Thursday reported a 3% decline in same-store sales for September, and said it expects the fire that occurred at the end of August at its distribution center in Fishkill, New York, will negatively impact its October comp-sales by approximately 3 percentage points and also have a negative impact on its comp-sales results in its fourth quarter.



Gap’s net sales for the five-week period ended October 1, fell 2% to $1.43 billion, compared with net sales of $1.46 billion for the five-week period ended Oct. 3, 2015.



September same-store sales at Gap Global fell 10%, including an estimated negative impact from the Fishkill distribution center fire of approximately 5 percentage points, versus flat last year.



Banana Republic Global comp sales were down 9%, including an estimated negative impact from the Fishkill distribution center fire of approximately 3 percentage points, versus negative 10 percent last year.



Old Navy Global same-stores rose 4%, including an estimated negative impact from the Fishkill distribution center fire of approximately 2 percentage points, versus positive 4% last year



"While we remain focused on performance across the portfolio, we are pleased to see a strong customer response to Old Navy’s product assortment, which continues to drive positive momentum at our largest brand,” said Sabrina Simmons, chief financial officer, Gap Inc.