Gap monthly sales impacted by Fishkill fire for the third consecutive time
Gap on Thursday released its November sales results, which was negatively impacted by traffic and the Fishkill Distribution Center fire from September.
Gap Global comparable sales fell 3% compared to a decrease of 4% in November 2015 and Banana Republic Global comparable sales increased 5% compared to a decrease of 19% in the previous year.
Old Navy Global comparable sales surprisingly decreased 2% and were negatively impacted by 1% due to the Fishkill Center fire. The brand performed better than last year when its comparable sales decreased 9%.
The Fishkill Center fire also had a 4% negative impact on Gap and a 3% negative impact on Banana Republic.
The company calculated the Fishkill Center fire impact by applying the forecasted merchandise margin rate before the fire occurred to the units that the company believed would have been sold in November.
“While November traffic trends remained challenging, we are encouraged that performance improved in the back half of the month and we remain focused on executing our holiday plans,” said Sabrina Simmons, chief financial officer, Gap Inc.
An intentional fire at the Fishkill Distribution Center in September has negatively impacted the company’s monthly results for the third straight month.
Gap in November reported its seventh straight quarterly sales decline and a decrease in net income to $204 million, or $0.51 per share, from $248 million, or $0.61 per share in the prior year’s comparable period. Net sales fell slightly to $3.80 billion.
CEO Art Peck said, "I'm pleased to see improved product across our brands, as well as areas of healthier merchandise margins, even against the backdrop of challenging traffic trends during the quarter."
Gap will report its December sales results on January 5, 2017.
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