Gap Posts First Comparable-Sales Increase Since March 2015
July 07 2016 - 6:30PM
Dow Jones News
Gap Inc. posted a surprise 2% comparable-sales increase in June
buoyed by strength at its Old Navy brand, following more than a
year of monthly declines.
"We are pleased to see better performance across the portfolio
this month, partly driven by an improvement in June traffic
trends," the retailer said.
In after-hours trading, Gap shares rose 4.5% to $22.60. Through
Thursday's close, the stock is down 22% in the past three
months.
The 2% increase is in sharp relief to the 3% drop projected by
analysts Thomson Reuters had polled.
The company's namesake brand had a 1% decline in comparable
sales, with Banana Republic down 4% and a 5% increase at Old
Navy.
Total sales rose to $1.57 billion from $1.54 billion.
Gap's last comparable-sales increase was in March 2015. Gap and
other mall-focused chains have been hurt by the rise of online
shopping and the popularity of fast-fashion retailers such as
H&M operator Hennes & Mauritz AB and Zara owner Inditex
SA.
Gap said on May 9 said it was suffering from a "tepid macro
environment for apparel retail."
Write to Josh Beckerman at josh.beckerman@wsj.com
(END) Dow Jones Newswires
July 07, 2016 18:15 ET (22:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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