Gap closes in on strong sales
Sales up as new product ranges score with customers
November 22 2003
Gap has reported third quarter profits up 94 per cent to $263m over the same period last year, driven by higher sales and the popularity of new product ranges.
Following the launch of new ranges featured in a high profile advertising campaign featuring Madonna and Missy Elliot, third quarter sales grew 8 per cent to $3.9bn, with comparable store sales up 6 per cent. Gap International sales grew by 4 per cent across the quarter.
Gap president Paul Pressler said: “We delivered a very solid performance for third quarter supported by better product assortments and more effective marketing to core customer segments, and a strong operational focus on flowing top-line gains through to bottom-line earnings growth.
“I’m pleased with how well our teams at Gap, Old Navy and Banana Republic are executing against our priorities. We continue to improve our customer focus and strengthen our foundation for longer-term growth.”
Gap’s year-to-date sales of $11 bn for the 39 weeks to November 1 represent an increase of 12 per cent over sales of $9.8bn for the same period last year.
The company’s year-to-date comparable store sales increased 9 per cent compared to a 7 per cent fall in the first nine months of 2002.
So far this year, the company has opened 33 stores and closed 75. Gap International now operates 656 stores from a company total of 4,210 across all its brands.
