Gap has updated on trading, and the results are stronger than expected.
Net sales for the five week period which ended April 4, increased by 1% to $1.53bn compared to net sales of $1.51bn over the same period in 2014.
The company‘s comparable sales for March were up 2% versus a 6% decrease last year.
Sabrina Simmons, Chief Financial Officer at Gap, commented:
“We are especially pleased with the strong customer response to Old Navy during this peak spring shopping month, and we remain focused on the steps necessary to drive improved product consistency across our entire portfolio”
Gap‘s comparable sales for March stayed the same for Gap Global and were only up slightly for Banana Republic Global which increased from -4% last year to -3%. However, Old Navy Global showed a positive uplift for the business, with its comparable sales rising from -7% to 14%
The retailer puts its overall March success down to Easter starting early this year. This meant that peak shopping times over the period were earlier. The results are likely to affect Gap‘s April results.
In February, Simmons described the month as a “relatively small sales month”, instead confirming the brand would focus on, “the spring shopping months ahead and delivering on our full- year goals.”
Gap‘s strategy seems to be working after a somewhat difficult 2014. CEO Art Peck is now in place, having taken over Glenn Murphy in September 2014 (a move that saw shares plummet). A new strategy, new management and improved sales results spell a promising leap into summer for the US retailer.