Gap Inc. Reports December Sales

SAN FRANCISCO--(BUSINESS WIRE)--Gap Inc. (NYSE:GPS) today reported that December 2011 net sales decreased 1 percent compared with last year.

“We expected December to be highly promotional, and while we competed aggressively across our brands, our performance was below our expectations”

Net sales for the five-week period ended December 31, 2011 were $1.98 billion compared with net sales of $2.01 billion for the five-week period ended January 1, 2011. The company’s comparable sales for December 2011, which include the associated comparable online sales, were down 4 percent compared with a 2 percent decrease for December 2010.

“We expected December to be highly promotional, and while we competed aggressively across our brands, our performance was below our expectations,” said Glenn Murphy, chairman and CEO of Gap Inc. “That said, we are encouraged by bright spots across our business, and we’re clear and focused on what needs to be fixed in order to improve our sales trend in 2012.”

Comparable sales for December 2011, which include the associated comparable online sales, were as follows:

  • Gap North America: negative 4 percent versus negative 6 percent last year
  • Banana Republic North America: negative 2 percent versus positive 2 percent last year
  • Old Navy North America: negative 4 percent versus flat last year
  • International: negative 6 percent versus negative 3 percent last year

Year-to-date net sales were $13.72 billion for the 48 weeks ended December 31, 2011, a decrease of 1 percent compared with net sales of $13.82 billion for the 48 weeks ended January 1, 2011. The company’s year-to-date comparable sales, which include the associated comparable online sales, decreased 4 percent compared with a 2 percent increase last year.

January Sales

The company will report January sales on February 2, 2012.

Forward-Looking Statements

This press release contains 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," "project," and similar expressions also identify forward-looking statements. Forward-looking statements include statements regarding the following:

  • Improving sales trend in 2012.

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 changes in general economic conditions or consumer spending patterns will have a negative impact on the company's financial performance or strategies;
  • the highly competitive nature of the company's business in the United States and internationally;
  • the risk that the company or its franchisees will be unsuccessful in gauging fashion trends and changing consumer preferences;
  • the risk that comparable sales and margins will experience fluctuations; and
  • the risk that the company will be unsuccessful in implementing its strategic, operating and people initiatives.

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 January 29, 2011, as well as the company's subsequent Quarterly Reports on Form 10-Q.

Forward-looking statements are based on information as of January 5, 2012. 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.

About Gap Inc.

Gap Inc. is a leading global specialty retailer offering clothing, accessories, and personal care products for men, women, children, and babies under the Gap, Banana Republic, Old Navy, Piperlime, and Athleta brands. Fiscal year 2010 net sales were $14.7 billion. Gap Inc. products are available for purchase in over 90 countries worldwide through about 3,100 company-operated stores, about 200 franchise stores, and e-commerce sites. For more information, please visit www.gapinc.com.

Contacts

Gap Inc.
Investor Relations:
Mike Jenkins, 415-427-4454
investor_relations@gap.com

Media Relations:
Louise Callagy, 415-427-3502
press@gap.com

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