Gap sales down 12 per cent

Gap Inc on Thursday reported it’s October sales down 12 percent with comparable store sales down 16 per cent. The company said net sales of $1.08 billion for the four-week period ended November 1, 2008, which is a decrease of 12 percent as compared with net sales of $1.23 billion for the same period ended November 3, 2007. The company’s comparable store sales for October 2008 decreased 16 percent compared with an 8 percent decrease for October 2007.

Comparable store sales by division for October for North America was down 14 per cent versus 7 per cent last year whereas it’s European and International sales were down 5 per cent versus negative 6 per cent last year.

“In October, we continued to deliver merchandise margins significantly above last year despite the tough market conditions,” said Sabrina Simmons, chief financial officer of Gap Inc. “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 thirteen weeks ended November 1, 2008, total company net sales were $3.56 billion, which is a decrease of 8 percent as compared with net sales of $3.85 billion for the thirteen weeks ended November 3, 2007. The company’s third quarter comparable store sales decreased 12 percent compared with a decrease of 5 percent in the third quarter of the prior year.

Gap Inc. will release its third quarter earnings via press release on November 20, 2008.

Image: Gap campaign

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