Gap Shares Tumble Following Larger-Than-Expected Decline In Mar. Comps

Shares of The Gap GPS are trading lower by about two percent to $38.09 after the company reported weak March sales results. Net sales for the five-week period ended April 5th, 2014 were $1.51 billion. Same-store sales were down six percent versus a one percent drop last year. Gap Global brands came in at negative seven percent versus flat last year. Banana Republic Global sales were negative four percent versus positive one percent last year. Old Navy sales were down seven percent versus negative two percent last year. “While March performance has been challenging, we remain confident in the opportunities ahead,” said Glenn Murphy, chairman and chief executive officer, Gap Inc. The company expected March to be negatively impacted due to the Easter holiday being in April this year versus March last year. Gap is looking for first-quarter gross margins to be lower year over year “by more than the year-over-year decline in the fourth quarter of fiscal year 2013.” The Gap reaffirmed previous full-year earnings per share guidance range of $2.90 to $2.95 for fiscal year 2014.