Trading declines have continued at global fashion retailer Gap, with results released today showing like-for-like (LFL) sales fell five per cent in its third-quarter period.
Its international trading performance was below that seen in its core North American market, with the former reporting a ten per cent LFL sales decline compared to a six per cent year-on-year slump registered by the latter.
Net income for the three-month period ending October 29th 2011 totalled $193 million (£122 million) compared to $303 million for the same quarter last year, and diluted earnings per share dropped 21 per cent to $0.38.
Glenn Murphy, Chairman and CEO of Gap, said: “Across our brands, we’re intensely focused on improving our current sales trend, including making necessary product and marketing adjustments, with a view toward building momentum as we head into 2012.
“We’re ready to compete aggressively this holiday.”
Last month Gap set out its strategy to improve its international performance by rapidly expanding its store numbers in emerging economies, with plans to boost the number of outlets it has in China and Hong Kong from 15 to 45 in the next 12 months for example.
Gap will also look to extend its franchise operations as part of the new strategy and opened franchise stores in four new countries - Chile, Poland, Serbia and Vietnam – during the quarter, helping to boost Gap’s sales in this division by 47 per cent year-on-year.