Gap’s key sales metric up 2pc in March
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Gap Inc. reported a 2 percent increase in a key revenue metric for March as surging business at Old Navy offset sales declines at its namesake division and its Banana Republic stores.
The results, which were released after the regular markets closed on Thursday, beat estimates for a 0.6 percent increase in sales in stores open at least a year, according to Thompson Reuters. But the figure was compared to a 6 percent drop in the same year-ago period. Shares fell in after-hours trading.
Revenue from stores open at least a year is considered a key indicator of retail performance because it strips away the impact of recently opened or closed stores.
Questions & Answers
Q.Which of Gap's brands contributed most to the overall sales increase in March?
Which of Gap's brands contributed most to the overall sales increase in March?
Surging business at Old Navy offset sales declines experienced by Gap's namesake division and Banana Republic stores. This indicates Old Navy was the primary driver of the positive key revenue metric.
Q.How did Gap's March sales performance compare to analysts' expectations?
How did Gap's March sales performance compare to analysts' expectations?
Gap's reported 2 percent increase in the key revenue metric beat analysts' estimates. Thompson Reuters had projected a 0.6 percent increase for sales in stores open at least a year.
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