SAN FRANCISCO – April 12, 2007 – Gap Inc. (NYSE: GPS) today reported net sales of $1.56 billion for the five-week period ended April 7, 2007, which represents a 16 percent increase compared with net sales of $1.35 billion for the five-week period ended April 1, 2006. Due to the 53rd week in fiscal year 2006, March 2007 comparable store sales are compared to the five-week period ended April 8, 2006. On this basis, the company’s comparable store sales for March 2007 increased 6 percent compared with a 13 percent decrease in March 2006.
Comparable store sales by division for March 2007 were as follows:
• Gap North America: positive 4 percent versus negative 13 percent last year
• Banana Republic North America: positive 8 percent versus negative 7 percent last year
• Old Navy North America: positive 10 percent versus negative 15 percent last year
• International: negative 5 percent versus negative 16 percent last year.
“Our comparable store sales improvement in March was driven primarily by customers shopping the week before Easter, the timing of which shifted from April in 2006 to March 2007,” said Sabrina Simmons, senior vice president, corporate finance at Gap Inc. “While our performance also benefited from spring clearance at Gap and Banana Republic, it resulted in merchandise margins that were below last year.”
Year-to-date net sales of $2.47 billion for the nine weeks ended April 7, 2007, increased 11 percent compared with net sales of $2.21 billion for the nine weeks ended April 1, 2006. The company’s year-to-date comparable store sales increased 2 percent, compared with a 12 percent decrease in the prior year.
As of April 7, 2007, Gap Inc. operated 3,147 store locations compared with 3,061 store locations on April 1, 2006.
For more detailed information, please call 1-800-GAP-NEWS to listen to Gap Inc.’s monthly sales recording. International callers may call 706-634-4421.
The company will report April sales on May 10, 2007.
This press release and related recording contain forward-looking statements within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than those that are purely historical are forward-looking statements. Words such as “expect,” “anticipate,” “believe,” “estimate,” “intend,” “plan,” and similar expressions also identify forward-looking statements. Forward-looking statements include statements regarding year-over-year change in inventory per square foot at the end of the first quarter of fiscal year 2007.
Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause the company’s actual results to differ materially from those in the forward-looking statements. These factors include, without limitation, the following: the risk that the company will be unsuccessful in gauging fashion trends and changing consumer preferences; the highly competitive nature of the company’s business in the U.S. and internationally and its dependence on consumer spending patterns, which are influenced by numerous other factors; the risk that the company will be unsuccessful in identifying and negotiating new store locations effectively; the risk that comparable store sales and margins will experience fluctuations; the risk that the company will be unsuccessful in implementing its strategic, operating and people initiatives; the risk that adverse changes in the company’s credit ratings may have a negative impact on its financing costs and structure in future periods; the risk that trade matters, events causing disruptions in product shipments from China and other foreign countries, or IT systems changes may disrupt the company’s supply chain or operations; and the risk that the company will not be successful in defending various proceedings, lawsuits, disputes, claims, and audits; any of which could impact net sales, costs and expenses, and/or planned strategies. Additional information regarding factors that could cause results to differ can be found in the company’s Annual Report on Form 10-K for the fiscal year ended February 3, 2007.
These forward-looking statements are based on information as of April 12, 2007, and the company assumes no obligation to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.
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