Gap's June Comps Fall Flat - Analyst Blog
10 Luglio 2012 - 10:45AM
Zacks
Fashion retailer Gap
Inc. (GPS) posted flat comparable store sales (comps) for
the five week period ended June 30, 2012 versus a 1% increase
witnessed in the comparable prior-year period. This also compares
with a 2% rise in comps registered in May.
The company’s June comps mainly
benefited from the continued positive trend in its North American
business. Comps for the month of June 2012 remained positive at all
Gap’s segments, except International.
June comps at Banana Republic North
America spiked 5% against a 3% increase recorded in the prior-year
period. Gap North America’s same-store sales were up 4% versus a 1%
dip recorded in the June period last year. Results at its Old Navy
North America segment reflected a 1% rise in comps compared with a
2% increase in the prior-year period.
However, comps at its International
segment fully offset the growth in other segments with comps
dropping 14% compared with a 2% rise seen in the year-ago
period.
Year-to-date, comps increased 3%
compared with a 2% decline posted in the year-ago comparable
period.
Net sales in June 2012 totaled
$1.41 billion, up 2% from the prior-year period sales of $1.38
billion. On a year-to-date basis, the company posted net sales of
$6.00 billion, reflecting a 5% growth year over year from $5.73
billion.
Gap is scheduled to release its
July 2012 sales results on August 2, 2012.
On the same day, two other Apparel
store retailers Ross Stores Inc. (ROST) and
Nordstrom Inc. (JWN) reported positive same-store
sales for the month of June 2012. Comps growth at Ross was 7% in
June, while Nordstrom recorded an 8.1% growth.
We believe that Gap’s long-term
strategic moves along with disciplined cost management measures
will not only provide financial flexibility, but will also help to
drive value proposition. Moreover, Gap’s globally recognized brands
complement one another, enabling it to leverage its position in the
sector.
Currently, Gap’s shares maintain a
Zacks #3 Rank, which translates into a short-term Hold rating. Our
long-term recommendation on the stock remains Neutral.
GAP INC (GPS): Free Stock Analysis Report
NORDSTROM INC (JWN): Free Stock Analysis Report
ROSS STORES (ROST): Free Stock Analysis Report
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