Gap Inc. reported net sales of $1.22 billion for the four-week period ended August 30, 2003, which represents a 5% increase compared with net sales of $1.16 billion for the same period ended August 31, 2002. The company's comparable store sales for August 2003 increased 4%, compared with a 2% decrease in August 2002.
Comparable store sales by division for August 2003 were as follows:
- Gap U.S.: positive 1% versus negative 4% last year
- Gap International: positive 1% versus negative 4% last year
- Banana Republic: positive 8% versus flat last year
- Old Navy: positive 6% versus flat last year
“Back-to-school marketing helped drive strong sales of our featured Gap cords and Old Navy cargos,” said Sabrina Simmons, senior vice president, Treasury and Investor Relations. “Banana Republic also had strong results as customers responded well to our wear-now Fall transitional merchandise.”
“While we're pleased with our positive comp performance, August sales overall were slightly below our beginning of month expectations,” Ms. Simmons said. “Strong consumer response to advertised products was somewhat offset by weaker than expected demand for fleece activewear and long sleeve tops at Old Navy, and long sleeve tops and basic denim at Gap. Total company merchandise margins were in-line with last year.”
Year-to-date sales of $8.3 billion for the thirty weeks ended August 30, 2003 represent an increase of 13% over sales of $7.3 billion for the same period ended August 31, 2002. The company's year-to-date comparable store sales increased 10% compared to a decrease of 11% in the prior year.
As of August 30, 2003, Gap Inc. operated 4,212 store concepts compared with 4,263 store concepts last year. The number of stores by location totaled 3,081 compared with 3,142 stores by location last year.
In a separate press release, Gap Inc. today announced that Nicholas A. Severino is joining the company as divisional Chief Financial Officer for Gap brand.
