Gap says revenue measure was flat in June, better than last year, but still below expectations
By APThursday, July 8, 2010
Gap revenue measure flat in June
SAN FRANCISCO — Gap Inc. said Thursday that its revenue at locations open at least one year was flat in June — an improvement from last year’s 10 percent decline, but still short of Wall Street forecasts.
The measure is a key indicator of a retailer’s performance because it excludes growth at stores that open or close during the year.
Analysts surveyed by Thomson Reuters had expected the owner of Gap, Old Navy and Banana Republic to post a 3.4 percent gain.
Overall revenue climbed 2 percent to $1.31 billion, up from $1.29 billion last year.
By segment, the San Francisco retailer said revenue from North American locations open at last a year fell 3 percent. Analysts expected an increase of 0.5 percent.
At Banana Republic, the measure climbed 6 percent. Analysts expected an increase of 7.5 percent.
They were flat at Old Navy, where they’d been expected to grow 5 percent.
And overseas, the figure was also flat. Analysts predicted a gain of 3.8 percent.
“June was a difficult month with lighter traffic than we anticipated,” Chief Financial Officer Sabrina Simmons said in a statement.
Gap shares slipped 72 cents, or 3.7 percent, to $19 in premarket trading Thursday. Shares closed Wednesday at $19.72.
