Gap reports sales struggles for July and Q2 2015
Gap announced Monday its sales results for second quarter 2015 and for the month of July. The company saw a decrease in net sales for its namesake brand and Banana Republic in both periods, and an increase in sales from Old Navy.
For the month of July, net sales decreased to $1.12 billion compared to $1.17 billion in July 2014, and net sales for the second quarter decreased 2% to $3.90 billion from $3.98 billion from the previous year’s corresponding period.
In July, comparable sales for Gap Global were negative 7% compared to negative 2% from last year, comparable sales for Banana Republic Global were negative 10% versus 6% from last year, and comparable sales for Old Navy remained at positive 3%. Comparable sales for Gap Inc. as a whole in July were down 3% compared to the 2% increase last year.
Second quarter comparable sales for Gap Global were negative 6% compared to negative 5% in the previous year, Banana Republic Global comparable sales were negative 4% versus flat last year, and Old Navy Global comparable sales were positive 3% compared to positive 4% in 2014. Gap Inc. comparable sales as a whole for Q2 2015 were down 2% versus flat last year.
“We’re pleased that Old Navy delivered another consecutive quarter of growth, while we continued to make progress against previously announced strategic actions at Gap brand,” said Sabrina Simmons, chief financial officer, Gap Inc.
The company noted that the sales numbers were negatively impacted by the translation of foreign currency to US dollars, especially due to the Japanese yen and Canadian dollar.
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