"While October was mixed across our brands, our teams
are determined to compete aggressively this holiday season by delivering great product in an inspiring shopping environment – in stores and online,” assured Glenn Murphy, chairman and chief executive officer of Gap Inc.
Gap reported that net sales for the third quarter, which ended October 29, 2011, decreased 2 percent to $3.59 billion compared with $3.65 billion for the third quarter last year. The company’s third quarter comparable sales, which include the associated comparable online sales, were down 5 percent compared with a 1 percent increase in the third quarter of the prior year.
Comparable sales for the third quarter of fiscal year 2011, including the associated comparable online sales, were not as positive as expected by the San Francisco based company. Gap North America presented a 6% drop, versus positive 2 percent last year, whereas Banana Republic North America lost 1%, against a +2% same period last year. Old Navy North America also downed, by 4 percent. Total international fell by 10%, compared to its gain of 4 percent last year.
Year-to-date net sales were $10.27 billion for the 39 weeks ended October 29, 2011, which was flat compared with net sales of $10.30 billion for the 39 weeks ended October 30, 2010. The company’s year-to-date comparable sales, including associated online sales, decreased 3 percent compared with a 2 percent increase last year.
The company expects diluted earnings per share for the third quarter of fiscal year 2011 to be in the range of $0.35 to $0.37. Gap Inc. will release its third quarter earnings via press release on November 17, 2011 at 1:00 p.m. Pacific Time.
According to the Financial News Network, Gap - based on a current price of $19.54-, is currently 1.0% above its average consensus analyst price target of $19.33. The stock should find initial support at its 200-day moving average (MA) of $19.47 and further support at its 50-day MA of $17.18. Gap Inc share prices have moved between a 52-week high of $23.73 and a 52-week low of $15.08.