| Gap reports continued sales decrease |
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| Sunday, 04 December 2005 | |
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US apparel giant Gap has reported a drop of 4 percent in November same-store sales. Improved results at the Old Navy brand have partially compensated for difficult trading at Gap and Banana Republic. The group's total net sales for November amounted to $1.4 billion (£808 million), unchanged from last year. Gap North America saw same-store sales decrease 5 percent, compared with last year's 1 percent drop. Banana Republic North America experienced a 5 percent sales decrease, down from 3 percent last year, while Old Navy North America sales dropped 2 percent, up from a 5 percent decrease last year. The group's international sales remained stagnant compared to last year's 5 percent decrease. "Although traffic remained challenging at Gap and Banana Republic in November, we were pleased that traffic trends improved at Old Navy as customers responded favourably to our second Holiday product flows and our Black Friday promotional events," said Sabrina Simmons, Senior Vice President, Treasury and Investor Relations. "However, promotional activity across the brands drove Gap Inc. merchandise margins significantly below those of November last year." Year-to-date net sales decreased 1 percent to $12.6 billion from $112.8 billion last year on a same-store sales drop of 5 percent. The group's new brand Forth & Towne, which was launched in August of this year, reported a 20 percent drop in income for the third quarter. As of the 29 November Gap Inc. operated 3,132 stores compared with 3,069 store locations last year. |

