Old Navy floats Gap's boat

Surging sales at Old Navy helped parent company Gap Inc. post an increase in same store sales for November and December.

Gap’s same store sales for the November and December holiday shopping season increased 3%.

For December alone, the figure rose 1%, slightly above Wall Street estimates for a 0.7% increase, according to Thomson Reuters.

“During November and December, we were pleased to achieve a positive 3 comp, led by Old Navy with a very strong 12 comp for the combined holiday months,” said Glenn Murphy, chairman and chief executive officer of Gap Inc.

Old Navy's results were likely aided by a big holiday promotion launched in November in which stores gave away $1 million to one lucky customer and 1,000 $200 gift certificates.

Net sales for the five-week period ended Jan. increased 2% to $2.10 billion, compared with net sales of $2.05 billion for the five-week period ended Jan. 4, 2014. Same store sales by global brand for December 2014 were as follows:

• Gap Global: negative 5% versus positive 1% last year

• Banana Republic Global: flat versus flat last year

• Old Navy Global: positive 8% versus negative 2% last year

In November, the San Francisco-based company announced leadership changes at its Gap and Banana Republic brands. The moves were spearheaded by Art Peck as he takes on the role of CEO of Gap Inc. in February, succeeding Glenn Murphy who has been at the helm since 2007. Peck, a 10-year-veteran at Gap, had been its digital leader overseeing new innovations that cater to mobile-savvy shoppers.

Gap Inc. has more than 3,200 company-operated stores and more than 400 franchise stores, along with its online shopping sites.