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Gap September net sales down 2 percent

By Prachi Singh

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Business

Gap has reported 2 percent decrease in net sales for the five-week period ended October 1, 2016 to 1.43 billion dollars compared with net sales of 1.46 billion dollars for the five-week period ended October 3, 2015.

"While we remain focused on performance across the portfolio, we are pleased to see a strong customer response to Old Navy’s product assortment, which continues to drive positive momentum at our largest brand,” said Sabrina Simmons, Chief Financial Officer, Gap.

Comparable sales for the month were down 3 percent versus a 1 percent decrease last year. The company estimated that the fire which occurred in a building on its Fishkill, New York distribution centre campus negatively impacted Gap’s September comparable sales by approximately 3 percentage points.

Comparable sales at Gap Global were negative 10 percent, including an estimated negative impact from the Fishkill distribution centre fire of approximately 5 percentage points, versus flat last year, Banana Republic Global posted negative 9 percent comparable sales, including an estimated negative impact of approximately 3 percentage points, versus negative 10 percent last year, while Old Navy Global was positive 4 percent, including the negative impact of about 2 percentage points, versus positive 4 percent last year.

The company also noted that as a result of the Fishkill distribution centre fire, it expects a negative impact of approximately 3 percentage points to Gap’s October 2016 comparable sales and a negative impact to comparable sales results in the fourth quarter of this fiscal year.

Picture:Gap

Gap