Gap’s August Sales Disappoint

Net and comp sales on the decline
Posted September 2, 2011

Gap Inc. (San Francisco) announced its August 2011 net sales decreased 3 percent compared with last year. The company’s comparable sales for August 2011, which include online sales, were also down, declining 6 percent compared with flat comparable sales for August 2010.

“As we said on our recent earnings call with investors, we’re determined to make the necessary adjustments to women’s product and marketing to improve our overall performance and drive top-line growth going forward,” says Glenn Murphy, chairman and ceo of Gap Inc.

Among its brand, comparable sales for August 2011 dropped 8 percent at Gap North America; down 4 percent at Banana Republic North America and Old Navy North America; and down 9 percent on an international basis.

Year-to-date net sales were $7.78 billion for the 30 weeks ended August 27, 2011, compared with net sales of $7.77 billion for the same period in 2010. The company’s year-to-date comparable sales, including associated online sales, dropped 3 percent compared with a 3 percent increase last year.