US-based apparel retailer GAP Inc. has announced its financial results for the first quarter of fiscal year 2017. During the quarter under review, comparable sales were up 2 per cent against 5 per cent decrease last year.
The retailer’s net sales stood at US $ 3.4 billion, flat to the first quarter of fiscal year 2016. The translation of foreign currencies into US dollars negatively impacted the company’s net sales for the first quarter of fiscal year 2017 by about US $ 11 million.
Comparable sales for its global brands like Old Navy noted positive 8 per cent against negative 6 per cent last year, GAP Global noted negative 4 per cent against negative 3 per cent last year, while Banana Republic Global posted negative 4 per cent against negative 11 per cent same period last year.
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“We are pleased with our positive comp and earnings growth this quarter. We’ve made substantial improvements in product quality and fit, and our increasing responsive capabilities are enabling us to better react to trends and demand,” said Art Peck, President and Chief Executive Officer, GAP, adding, “While the retail environment continues to be challenging, we are focused on delivering the best possible product and customer experience, and our ability to leverage a portfolio of iconic brands and operating scale uniquely positions the company for long-term growth.”
The company now expects store count to be about flat at the end of fiscal year 2017 compared with fiscal year 2016, down from previous guidance of 40 net store openings.