Gap continues to struggle, Q2 same-store sales drop 4 percent

Gap Inc. reported earnings per share of 44 cents on a basic and diluted basis, compared to 77 cents and 76 cents, respectively in the second quarter of last year. On an adjusted basis, earnings per share were 63 cents. The company’s second quarter comparable sales were down 4 percent compared with a 2 percent increase last year, while net sales were 4 billion dollars, a decrease of 2 percent compared with last year.

“We are operating in a challenging environment, but I remain confident in the strength of our brands and our plans for the future as we work to launch two independent, public companies,” said Art Peck, President and CEO, Gap in a statement.

Gap’s same-store sales decline at its core global brands

Comparable sales at Old Navy Global were negative 5 percent versus positive 5 percent last year, at Gap Global, negative 7 percent versus negative 5 percent last year and at Banana Republic Global, comparable sales were negative 3 percent versus positive 2 percent last year.

The company has updated its reported diluted earnings per share guidance for fiscal year 2019 to be in the range of 1.88 dollars to 2.08 dollars and affirmed its adjusted diluted earnings per share guidance range of 2.05 dollars to 2.15 dollars. The company continues to expect comparable sales for fiscal year 2019 to be down low single digits. Gap continues to expect to close about 30 company-operated stores, which includes about 130 closures related to the Gap brand fleet restructuring, the majority of which are expected to close in the fourth quarter of fiscal 2019. The company continues to expect store openings to be focused on Old Navy, Athleta and Gap China locations.

Picture:Facebook/Old Navy