Gap's Comparable Sales for March 2014 Were Down 6 Percent Versus a 1 Percent Decrease

Gap Inc. reported net sales of $1.51 billion for the five-week period ended April 5, 2014. Gap Inc.’s comparable sales for March 2014 were down 6 percent versus a 1 percent decrease last year.

“While March performance has been challenging, we remain confident in the opportunities ahead,” said Glenn Murphy, chairman and chief executive officer, Gap Inc. “We are pleased to reaffirm our full-year EPS guidance range.”

March Comparable Sales Results
Comparable sales by global brand for March 2014 were as follows:
-Gap Global: negative 7 percent versus flat last year
-Banana Republic Global: negative 4 percent versus positive 1 percent last year
-Old Navy Global: negative 7 percent versus negative 2 percent last year

As the company noted last month, the Easter holiday is in April this year versus March last year. Given this shift in peak spring selling weeks, the company expected March to be negatively impacted.

The company expects gross margins for the first quarter of fiscal year 2014 to be below the prior year by more than the year-over-year decline in the fourth quarter of fiscal year 2013. In addition, given ongoing expense management, the company expects first quarter fiscal year 2014 operating expenses to be flat to last year.

The company reaffirmed its previous full-year earnings per share guidance range of $2.90 to $2.95 for fiscal 2014.