San Francisco, Gap Inc. will expand its Banana Republic brand into Japan, opening three stores in the Tokyo area in fall 2005. Additional store openings are planned for spring 2006. Gap’s expansion into Japan isn’t that surprising given that the company already operates 75 stores under its nameplate banner in the country. Andrew Rolfe, president of Gap’s international division, will oversee Banana Republic’s expansion in Japan.
In other news, Gap reported that net earnings for the third quarter increased 1% to $265 million, or 28? per share on a diluted basis, compared to $263 million, or 28? last year. Gap’s total revenues in the third quarter rose 1.3% to $4 billion from $3.9 billion last year. Same-store sales were down 1% for the quarter compared to a prior-year increase of 6%.