Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

Gap Inc. (GPS - Analyst Report) reported comparable-store sales (comps) increase of 7% for the 4 weeks ended Jun 1, 2013 compared with a 2% rise registered for the 4 weeks ended Jun 2, 2012, driven by strong results at its namesake Gap and Old Navy stores.

Moreover, net sales totaled $1.22 billion for the 4 weeks ended Jun 1, 2013, up 11% compared with sales of $1.10 billion for the 4 weeks ended May 26, 2012.

The difference in the year-ago period comparisons for comps and net sales is primarily due to the inclusion of an additional week in fiscal 2012.

Global brand-wise, comps performances at Gap Global were up 8% compared to a 4% increase in the prior-year period, while comps at Banana Republic were flat compared to a 7% increase recorded last year. Old Navy’s comps increased 9% versus a 1% decline in May last year.

The improvement in comps and sales for May mainly came from the favorable customer response to the company’s summer assortments across all brands as well as the sustained impetus in its businesses.

Gap, which witnessed a phase of declining comparable-store sales and reduced profitability, is now gradually treading the growth path, based on turnaround strategies as evident from its solid comps and sales performance in fiscal 2013 so far.

Earlier this week, Gap announced that it is taking its global expansion plans a step further with the opening of franchise and standalone stores in Paraguay, Hungary and Mexico. Apart from this, the company is planning to extend its international operations to 8 Latin American countries, including, Chile, Panama, Colombia, Mexico, Uruguay, Paraguay, Peru and Brazil.

Gap has been marching ahead with its long-term plans by reducing its dependency on the North American specialty business, while increasing its online presence and expanding international operations. Moreover, Gap aims to generate 30% of its total sales from overseas operations and online business in 2013 versus 27% in fiscal 2012.

Recently, 3 other retailers – Zumiez Inc. (ZUMZ - Analyst Report), Rite Aid Corp. (RAD - Analyst Report) and The Cato Corp. – reported comparable-store sales increase of 1.1% and decline of 1.5% and 2%, respectively for the month of May.

This Zacks Rank #2 (Buy) company is scheduled to release its June sales results on Jul 11, 2013.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GROUP DXYN 15.84 +7.90%
BOFL HOLDING BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%