Gap still struggling in competitive markets
Wednesday, 08 February 2012
Gap reported its January 2012 net sales decreased 1 percent compared with last year. “January was largely clearance-based, and we’re pleased we successfully cleared holiday inventory,” said Glenn Murphy, chairman and chief executive officer
of Gap Inc. “As we transition to a new year, our teams are focused on making the necessary steps to improve our business performance in 2012.”Net
sales for the four-week period ended January 28, 2012 were $833 million compared with net sales of $843 million for the four-week period ended January 29, 2011. The company’s comparable sales for January 2012, which include the associated comparable online sales, were down 4 percent compared with a 3 percent increase for January 2011.In addition, the company reported that net sales for the fourth quarter of fiscal year 2011, which ended January 28, 2012, decreased 2 percent to $4.28 billion compared with $4.36 billion for the fourth quarter last year. The company’s comparable sales for the fourth quarter of fiscal year 2011, which include the associated comparable online sales, were down 4 percent compared with a 1 percent increase in the fourth quarter last year.
Gap's UK and international sales saw a drop of 10% compared to a positive 9 percent last year. This proves the Gap product is struggling on the British high street compared to a more fashion forward approach by its European competitors. Having closed its London-based design office, the company
Image: Gap campaign
