GAP Inc., the US-based apparel retailer, has announced financial results for the second quarter of 2017 fiscal year. Its comparable sales were up by 1 per cent during the review quarter against a 2 per cent decrease last year.
The company earned US $ 271 million net income in the quarter gains US $ 125 million a year ago. Its total revenue, however, declined 1.4 per cent to settle at US $ 3.8 billion.
“With a third consecutive quarter of comparable sales growth, we are seeing our investments in product, customer experience, and brand equity begins to pay off,” said Art Peck, President and CEO, GAP Inc.
However, the fashion brand’s second quarter net sales stood at US $ 3.80 billion against US $ 3.85 billion for the same quarter of last fiscal. Net sales during the second quarter were negatively impacted by the translation of foreign currencies into US dollars.
GAP’s global brands like Old Navy noted a 5 per cent rise in comparable sales versus flat last year. GAP Global noted a (-) 1 per cent drop in sales against a (-) 3 per cent last year. Banana Republic Global reported a (-) 5 per cent decline in comparable versus (-) 9 per cent in the same period of 2016.
The apparel retailer now expects a flat or slight increase in comparable sales for the 2017 fiscal year. Foreign currency fluctuations year-over-year and the impact of international closures may result in slight decrease in net sales for the full year, GAP states.
