Gap Net Up in Quarter, Forecasts Raised
Old Navy and Gap reported positive comp sales while Banana Republic was less negative than a year ago.
Gap Inc., showing improvements across its major divisions, reported that its third-quarter net income increased to $229 million from $204 million in the year-ago quarter.
Comparable sales rose 3 percent.
The retailer increased its adjusted earnings per share guidance for the year to a range of $2.08 to $2.12, compared with previous guidance of $2.02 to $2.10.
“Today, we are happy to report our fourth consecutive quarter of positive comps, reflecting the continued momentum in key parts of our business,” said Art Peck, president and chief executive officer, Gap Inc.
“We continue to make progress against the balanced growth strategy we outlined in September, driving efficiency at our more mature brands, while growing our footprint in the value and active space, and investing in our online and mobile experience.”
By division, Old Navy Global saw comp sales rise 4 percent; Gap Global was up 1 percent, and Banana Republic Global was negative 1 percent.
The company now expects comparable sales for fiscal year 2017 to be up low-single-digits.
Net sales for the third quarter of fiscal year 2017 were $3.84 billion compared with $3.8 billion for the third quarter of fiscal year 2016.
The company ended the third quarter of fiscal year 2017 with 3,639 store locations in 46 countries, of which 3,193 were company-operated. The company now expects to close about 30 company-operated stores, net of openings and repositions.