For July, Gap Inc. comps showed a 3 percent decline, which compares to a 2 percent increase in the same month last year.
By brand, Gap Global posted a 7 percent same-store sales decline, which is on top of a 2 percent decline last year, while Banana Republic Global fell 10 percent versus a 6 percent gain last year.
At Old Navy Global, comps rose 3 percent, which is on top of a 3 percent gain last year. “We’re pleased that Old Navy delivered another consecutive quarter of growth, while we continued to make progress against previously announced strategic actions at Gap brand,” said Sabrina Simmons, chief financial officer of Gap Inc.
Net sales for the four-week period ended August 1, dropped to $1.12 billion from $1.17 billion while second-quarter net sales slid to $3.9 billion from $3.98 billion.
As a result, the retailer said it expects earnings per share for the second quarter to be between 51 and 52 cents. In its statement, Gap “noted that its second quarter fiscal year 2015 earnings per share range includes impacts associated with foreign currency fluctuations, West Coast port delays, and previously announced strategic actions primarily related to Gap brand.”
Excluding the Gap brand charges, the adjusted earnings are pegged to be between 63 and 64 cents, the retailer said.
The company added that on a constant currency basis, “net sales for the second quarter of fiscal year 2015 were about flat versus last year.” And regarding currency translations, the retailer said results were “negatively impacted the company’s reported net sales for the second quarter of fiscal year 2015 by about $100 million, primarily due to the weakening Japanese yen and Canadian dollar.”
Also impacting results was a shift in tax-free days in some states.