The Gap (GPS) Same Store Sales Rise Six Percent
Shares of The Gap Inc. (GPS) were trading up +1.44 or +3.55 percent to $42.00 per share in this morning's premarket, after the company announced that November same store sales had risen six percent compared to a year earlier. Analysts expected a -1.4 percent decline. Gap stock closed at $40.56 per share, down -0.04 or -0.10 percent in Thursday's regular trading session.
The Gap reported net sales for the four week period ended on November 29th, 2014 were $1.72 billion. This compares to net sales of $1.63 billion in the same period one year ago. The company reported comparable sales by global brand for November with Gap Global, coming in at a negative four percent versus positive two percent last year; Banana Republic Global, with a positive two percent versus a negative one percent a year ago and finally Old Navy Global, which reported a positive 18 percent compared to a positive three percent one year ago.
Same store sales revenue is an important metric in the retail industry, due to the fact that it excludes the impact that a new store or a recently closed store might have on overall income. The same store sales metric measures net income from stores that have been open for at least one year. The 18 percent increase in Old Navy's same store sales was in part due to heavy advertising and a 50 percent discount on all of the stores merchandise on the day after Thanksgiving known as Black Friday.
The Gap's outgoing Chief Executive, Glen Murphy said that, "Old Navy delivered standout performance in November, with customers responding positively to the brand's holiday assortment and marketing. With much of the holiday season still ahead, we remain focused on strong execution across all of our brands."
The company announced earnings on November 20th, cutting its forecast for the full year and reporting lower than expected sales in the company's fiscal third quarter. Also, the company will make key changes to management at its Gap and Banana Republic brands.
Changes to management were made by incoming Chief Executive Art Peck, president of the company's Growth, Innovation and Digital division who will succeed retiring Chief Executive Glenn Murphy on February 1st, 2015, while Bob Fisher will become the company's new Chairman of the Board.
The Gap Inc. stock is trading a few points under its yearly high in this morning's premarket, after making a yearly low of $35.46 in mid-October. Despite a lower full year forecast, the stock could test its yearly highs if the company has a better than expected holiday sales season.
Other News About The Gap
The Gap's Sales Go Into A 3-Month Slide Following Its 'Dress Normal' Ad Campaign Failure
The Gap brand saw a four percent slide in sales in November.
Gap strikes deal with Zalando to sell its core brand
Deal with European retailer will have Zalando feature the Gap brand in its 200 European stores.
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