Gap Inc international sales fall hardest
By Gemma Taylor 03:41PM - Thu 6th October 2011
Fashion retail group Gap Inc has today reported a decline in sales across all geographical areas of its market, with international sales experiencing the greatest fall.
According to results published by the group - which incorporates Banana Republic, Gap, Old Navy, Piperlime, and Athleta brands - sales for the five week period ending October 1st 2011 were down 13 per cent compared to a four per cent increase in annual growth for the same period last year.
Gap sells its products globally with 3,100 company-operated stores, around 200 franchise stores and e-commerce sites.
These disappointing results come after Banana Republic announced it is to expand its European portfolio by opening its first store on Paris’s world-renowned Avenue des Champs Élysées.
Fully operational throughout the US, the group reported net sales of $1.35 billion (£877 million) compared with $1.34 billion for the same period in 2010, while year-to-date net sales were flat at $9.12 billion.
Comparable sales for September 2011, including the associated comparable online sales were negative throughout North America, with Gap reporting a decrease of four per cent while Banana Republic and Old Navy both saw a one per cent fall.
Glenn Murphy, chairman and CEO of Gap Inc., acknowledged that the results were unimpressive, but argued that there are reasons to remain positive.
“While there were some bright spots across our brands and business units, we’re clear and focused on the steps necessary to improve our business performance going forward,” he said.