Gap Posts Positive Same-Store Sales

A blockbuster month for Old Navy led to positive same-store November sales for parent company Gap Inc., which recently lowered its earnings guidance for the year.

In a bid to combat sluggish demand, retailers have continued heavy discounting and promotions to attract shoppers, weighing on margins.

Gap Inc. said Old Navy same-store sales rose 18%, a "standout" performance, as customers responded favorably to the brand's "holiday assortment and marketing."

Gap shares were up 3.6% to $42.01 in recent late trading.

Same-store sales declined 4% at Gap's namesake chain, while its Banana Republic brand posted a 2% increase.

Net sales for the four weeks ended Nov. 29 were $1.72 billion, compared with $1.63 billion a year earlier.

The results topped the estimates from analysts polled by Thomson Reuters, which called for a 1.4% decline overall, including increases of 1.3% at Old Navy and 0.3% at Banana Republic, and a 4.2% decline at the Gap chain.

Late last month, Gap overhauled the leadership of its struggling Gap brand, naming Jeff Kirwan global president, succeeding Stephen Sunnucks, who will leave the company Dec. 19. Mr. Kirwan was most recently the parent company's president for Greater China.

Write to Josh Beckerman at

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