May 23, 2018 | By Alice Gividen
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The bad news has not let up at Gap Inc, as declining sales in its eponymous brand and at the Banana Republic chain hit third-quarter earnings.
Earnings per share in the three months ended October 30 is expected to be $62-63 cents a share, excluding a series of one-off items, down on Wall Street estimates of $0.66 per share.
Over the quarter, net sales were flat on last year, with the brand emphasising that the translation of foreign currencies into US dollars negatively impacted the company’s reported sales for the period by about $98m, primarily due to the weakening Japanese yen and Canadian dollar.
Over the quarter, Gap posted a 4% decline in like-for-like sales, while Banana Republic comparables slid 12%, while Old Navy posted a 4% comparable sales gain.
In October, Gap sales fell 4% on a comparable basis, Banana Republic sales slid 15%, while Old Navy sales rose 2% on last year.
CEO Art Peck has been working to revive sales at the struggling Banana Republic and Gap chains, naming presidents to lead the two units, and last month announcing that Banana Republic creative director Marissa Webb would step down.
Gap Inc CFO Sabrina Simmons said: “With fall behind us, the teams across our portfolio are focused on strong execution for the holiday season.”
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