Gap Inc. (GPS) reported a 4% jump in comparable-store sales for the month of November, after a 2.0% growth registered in both October and September 2010.
The 4.0% increase in same-store sales at Gap emanated from a growth of 5% each in Gap North America and Old Navy North America countered by 1% shrinkage at International comparable-store sales. Banana Republic North America recorded flat growth for the month.
After inching up 4.0% in October 2010 to $1.19 billion, total sales for the month under review increased by 6.0% to $1.51 billion from $1.42 billion in the comparable period last year.
Year-to-Date Sales and Same-Store Sales
Year to date, the company registered a top-line growth of 4.0% reaching $11.81 billion from $11.38 billion recorded in the prior-year period. Comparables-store sales for the period registered a growth of 2.0%.
Gap currently operates 3,100 stores in Canada, the United Kingdom, France, Ireland and Japan. The company is also increasing its international exposure. Currently, it has franchise agreements in Asia, Europe, Latin America and the Middle East. The company has opened its first Gap flagship store in Italy, one of the top five apparel markets in the world.
In fiscal 2010, the company plans to open approximately 65 new stores, mostly in international locations such as China, Italy and Australia. The company also expects to close approximately 100 stores.
The San Francisco, California-based retailer expects earnings for fiscal 2010 in the range of $1.77–$1.82 per share. The Zacks Consensus Estimate of $1.82 lies at the high end of the guided range.
The company operates in a highly fragmented specialty retail sector and faces intense competition from other teen-focused retailers, such as American Eagle Outfitters Inc. (AEO) and The TJX Companies Inc. (TJX).
Gap's shares maintain a Zacks #3 Rank, which translates into a short-term ‘Hold' rating. Our long-term recommendation on the stock remains ‘Neutral'.
AMER EAGLE OUTF (AEO): Free Stock Analysis Report
GAP INC (GPS): Free Stock Analysis Report
TJX COS INC NEW (TJX): Free Stock Analysis Report
Zacks Investment Research
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.