Gap Inc.’s sales remain soft in August; drop 3 percent
Nathan Andrada – Fourth Estate Contributor
New York, NY, United States (4E) – Gap Inc.’s continue to post weak sales in the month of August, with its Gap and Banana Republic stores reporting sharp sales declines at established stores partially due to the timing of the Labor Day holiday.
During the four-week period ended Aug. 29, sales dropped 3 percent overall to $1.20bn. When adjusted for changes in currency values, sales would have remained unchanged from the previous year, according to the company.
Comparable sales, which include sales at stores open for at least 12 months and online sales, fell by 2 percent. The figure compared with analysts’ average estimate of a 0.2 percent drop. Sales also tumbled 2 percent in August last year.
The company’s Old Navy brand continued to be its strongest performer with sales rising by 6 percent for the month compared with 2 percent a year ago.
For Banana Republic, sales at established stores declined 11 percent, from a 2 percent drop in the prior year. Meanwhile, sales at Gap tumbled 8 percent from last year’s 6 percent fall.