The FINANCIAL — Gap Inc. on September 3 reported that net sales for the four-week period ended August 29, 2015 decreased 3 percent to $1.20 billion compared with net sales of $1.23 billion for the four-week period ended August 30, 2014.
On a constant currency basis, August 2015 net sales were flat compared with last year. In calculating the net sales change on a constant currency basis, current year foreign exchange rates are applied to both current year and prior year net sales. This is done to enhance the visibility of underlying sales trends, excluding the impact of foreign currency exchange rate fluctuations, according to Gap.
“We’re pleased that Old Navy delivered another strong month of positive comps driven by a healthy back-to-school business, as we remain focused on improving product performance across our portfolio,” said Sabrina Simmons, chief financial officer, Gap Inc.
August Comparable Sales Results
Gap Inc.’s comparable sales for August 2015 were down 2 percent versus a 2 percent decrease last year. Comparable sales by global brand for August 2015 were as follows:
Gap Global: negative 8 percent versus negative 6 percent last year
Banana Republic Global: negative 11 percent versus negative 2 percent last year
Old Navy Global: positive 6 percent versus positive 2 percent last year
The company noted that this year’s Labor Day holiday is one week later, as compared to last year, offsetting the benefit from the shift of tax-free holidays in a number of states from July last year to August this year.