Gap Same-Store Sales In July Falls 3%; Sees Q2 Earnings Below Consensus

(RTTNews) - Apparel retailer Gap Inc (GPS) on Monday said its comparable sales for July fell 3 percent, compared with a 2 percent increase last year.

Comparable sales were a negative 7 percent at namesake stores, negative 10 percent at Banana Republic, while it was a positive 3 percent at Old Navy stores.

The company noted that tax-free holidays in several states shifted from July last year to August this year. Also, this year's Labor Day holiday is one week later, compared with last year.

Gap said its sales for the four-week period ended August 1, 2015 were $1.12 billion, compared with $1.17 billion a year ago.

Also, Gap said its sales for the second quarter fell 2 percent to $3.90 billion from $3.98 billion last year. Analysts polled by Thomson Reuters estimated sales of $3.97 million for the quarter.

On a constant currency basis, Gap's sales for the quarter were about flat versus last year. The company noted that the translation of foreign currencies into U.S. dollars hurt quarterly sales by about $100 million, primarily due to the weakening Japanese yen and Canadian dollar.

Gap said it expects second-quarter net earnings of $0.51 to $0.52 per share and adjusted earnings of $0.63 to $0.64 per share.

Analysts expect the company to report earnings of $0.66 per share for the quarter. Analysts' estimates typically exclude special items.