The FINANCIAL — Gap Inc. on October 8 reported that net sales for the five-week period ended October 3, 2015 decreased 1 percent to $1.46 billion compared with net sales of $1.48 billion for the five-week period ended October 4, 2014.
On a constant currency basis, September 2015 net sales increased 2 percent 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 Inc..
“While September proved challenging, our leadership teams remain focused on taking the necessary steps to improve performance,” said Sabrina Simmons, chief financial officer, Gap Inc.
September Comparable Sales Results
Gap Inc.’s comparable sales for September 2015 were down 1 percent versus flat last year. Comparable sales by global brand for September 2015 were as follows:
Gap Global: flat versus negative 3 percent last year
Banana Republic Global: negative 10 percent versus positive 2 percent last year
Old Navy Global: positive 4 percent versus positive 1 percent last year
The company now expects its gross margin rate for the third quarter of fiscal year 2015 to be similar to the second quarter of fiscal year 2015.