Gap Inc. October comps down 16%

SAN FRANCISCO Gap Inc. reported net sales of $1.08 billion for the four-week period ended Nov. 1, a decrease of 12% as compared with net sales of $1.23 billion for the same period in 2007. Comparable-store sales decreased 16%, compared to an 8% decrease for October 2007.

Comps for Gap decreased 14%, Banana Republic saw a 17% comps drop, Old Navy posted comps of negative 20% and International comps came in at a 5% decrease.

"In October, we continued to deliver merchandise margins significantly above last year despite the tough market conditions," said cfo Sabrina Simmons. "We are reaffirming our full-year earnings guidance and will continue to use inventory and cost management to offset what we anticipate will be a challenging holiday season."

For the 13-week third quarter, total company net sales were $3.56 billion, a decrease of 8% from $3.85 billion in 2007. Comparable-store sales decreased 12%, compared with a decrease of 5% in the third quarter of the prior year.

Third-quarter comps fell 7% at Gap, 11% at Banana Republic, 18% at Old Navy and 1% internationally.

Gap Inc. expects diluted EPS on a GAAP basis for the third quarter to be 33 cents to 35 cents, compared with diluted EPS of 30 cents last year. The company reaffirmed that it expects full-year diluted EPS of $1.30 to $1.35 on a GAAP basis, compared with fiscal year 2007 diluted earnings per share of $1.05.