Gap Shares Drop After Sales Slip, Same-store Sales Decline

By Markets MarketWatch Pulse

Gap Inc. shares fell 4.4% in Monday post-market trading after the company said revenue and same-store sales slipped for the month of July, as well as for the second quarter. The retailer said sales for the four weeks ending July 30 were $1.10 billion, down from $1.12 billion a year ago. Sales for the quarter totaled $3.85 billion, down from $3.90 billion for the same period last year, but beating the FactSet consensus of $3.77 billion. Gap Inc. same-store sales for the month were down 4%, as were same-store sales for the Gap Global namesake brand. July same-store sales dropped 14% at Banana Republic and were flat at Old Navy. For the second quarter, same-store sales for Gap Inc. were down 2%, compared with the FactSet consensus of 2.7% decline. Same-store sales for the quarter were down 3% at the Gap Global brand, down 9% at Banana Republic, and flat at Old Navy. The company expects second-quarter earnings per share to be in the range of 30 cents to 31 cents, and adjusted earnings per share in the range of 58 cents to 59 cents exceeding the FactSet consensus of 48 cents. Gap shares are down 26.6% for the past year while the S&P 500 Index is up 5% for the same period.

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