Gap recovery stalls as Christmas comes late
International sales decline for fashion giant
January 11 2004
Gap saw its phenomenal recovery over the past year stutter in December as US consumers left holiday shopping until late and international like-for-like sales declined.
Total group sales were $2.52bn in the five weeks to January 3, with group like-for-like sales up just 1 per cent, compared with a 5 percent increase in December 2002.
The core US Gap chain saw flat like-for-like sales, while Gap International saw a 3 per cent like-for-like decline compared to a 3 per cent increase last year. The US Banana Republic chain saw 10 per cent like-for-like growth, and Old Navy like-for-likes were up 2 per cent.
Sabrina Simmons, senior vice president, said: “Consistent with national mall traffic trends, traffic was weakest in the first three weeks of the month.
“However, sales performance strengthened in weeks four and five as customers began shopping and spending just before and right after Christmas.
“Importantly, throughout the month, our product and markdown strategies drove year-over-year merchandise margin improvement, with better margins at regular price and markdown.”
Gap’s total year-to-date sales of $14.9bn for the 48 weeks to January 3 10 per cent up on the same period a year before. Group like-for-likes for the 48 weeks are up 7 per cent.
