Gap Posts Strong Comparable Sales Growth in May (GPS)
Shares of Gap Inc. (NYSE: GPS) gained in premarket trading on Friday after the apparel retailer, known for its namesake, Banana Republic and Old Navy Brands, reported late last evening that net sales for the four week period ended June 1, soared 11% to $1.22 billion from the same period of last fiscal year.
Comparable-store sales, a key gauge on retail chain’s performance since it includes sales from only those stores that were operational for at least 12 month thereby providing accurate information on the sale trend, jumped 7% from the same period of last year. Analysts were expecting for an increase of 4.1%.
Comparable sales jumped 8% at its Gap Stores, increased 7% at its Banana Republic stores while it climbed 9% at its Old Navy stores.
Meanwhile other retailers such as Costco Wholesale Group and Victoria Secret also reported that sales grew in May on Thursday, suggesting that the U.S. consumer spending, which is considered as one of the pillars of the U.S. economy, was rising gradually.
Costco said comparable-store-sales increased 5%, which was a tad short of Wall Street’s expectation for 5.5% growth.
L Brands Inc, which is the parent company of Victoria’s Secret and Bath & Body Works said that comparable-store-sales climbed 3% while the Wall Street was expecting 3.2% increase. The Company anticipates similar percentage growth in Comparable sales in June.
Overall, Comparable-store-sales of 11 prominent U.S. retail chains increased 4.8% in May while analysts polled by Thomson Reuters were expecting a growth of 3.7% for the four week period ended on June 2.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.
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