Gap posts fourth consecutive quarter of positive growth
US fashion retailer Gap has posted a third quarter increase in group like-for-like sales of 3%.
This included an uplift of 4% for its Old Navy brand and a 1% rise at Gap. Meanwhile, sales at Banana Republic declined by 1%.
Net sales for the third quarter were $3.84 billion compared with $3.80 billion for the corresponding period in 2016.
During the period, operating expenses were $1.15 billion compared with $1.10 billion last year. Excluding restructuring costs of $36 million recorded in the third quarter of 2016, third quarter operating expenses in the current year were up about $80 million when compared with last year on an adjusted basis. The uplift was driven mainly by an increase in marketing and payroll, largely due to bonus, as well as investments in digital and customer initiatives to support the company’s growth strategy
Art Peck, president and chief executive of Gap Inc., said: “We are happy to report our fourth consecutive quarter of positive comps, reflecting the continued momentum in key parts of our business.
“We continue to make progress against the balanced growth strategy we outlined in September, driving efficiency at our more mature brands, while growing our footprint in the value and active space, and investing in our online and mobile experience.”
The company has also announced that it has appointed Evernote chief executive Chris O’Neill as a non-executive director.
Prior to joining Evernote, O’Neill spent 10 years in numerous leadership positions within Google. His past roles also include managing director of Google Canada where he is credited with doubling the Canadian business in just under three years.
“Chris is a proven leader in the technology industry and brings a wealth of knowledge, experience, and creativity to our board of directors,” said Bob Fisher, chairman of the board of Gap Inc. “His expertise will be a great asset to the company as we enter our next phase of growth.”
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