Gap Inc, leading global retailer offering clothing, accessories and personal care products, has reported $4 bn in net sales for third quarter of FY2019, down 2 per cent compared to last year third quarter. The gross profit was $1.56 bn, a decrease of 4 per cent, and gross margin was 39 per cent, a decrease of 70 basis points compared to last year.
The company’s third quarter fiscal year 2019 comparable sales were down 4 per cent versus flat last year. During the quarter, the company repurchased 2.9 mn shares for $50 mn and ended the third quarter of fiscal year 2019 with 373 mn shares outstanding. The company ended the third quarter of fiscal year 2019 with 3,938 store locations in 44 countries, of which 3,396 were company operated.
“We are not pleased with the third quarter results and are focused on aggressively addressing the operational issues that are hindering the performance of our brands,” said Robert J Fisher, Gap Inc. interim President and Chief Executive Officer. “We continue to make progress against our separation plans, which will provide improved focus and a further catalyst for transformation.”
The company affirmed its reported diluted earnings per share guidance for fiscal year 2019 to be in the range of $1.38 to $1.47 and its adjusted diluted earnings per share guidance range of $1.70 to $1.75.
The company now expects comparable sales to be down mid-single digits and net sales growth to be down low-single digits for fiscal year 2019.
