Fashion chain Gap today reported flat sales over the festive season after yet another tough month for the US group.
Gap, which has been battling falling demand for more than a year, said sales totalled £2.2bn (£1.53bn) in the five weeks to 5 January, the same as the previous year.
Like-for-like sales in December slid 11%, a sharper fall than the 6% decline recorded in December 2000.
But despite the downbeat figures, Gap said it was pleased with the group’s performance – December’s drop was Gap’s lowest monthly decline since June and an improvement on November’s 25% slump.
Chief financial officer Heidi Kunz said: “December sales results significantly exceeded our expectations across all divisions, driven by intense promotional activity.
“While merchandise margins were well below last year, they did show some improvement compared to beginning of month projections, particularly at Gap.”
For the year to date, comparable store sales decreased 13% compared with a 4% drop in the previous year.
Gap, based in San Francisco, has 4,179 stores in the US, Canada, the UK, France, Germany and Japan.
As well as the Gap brand – which includes BabyGap and GapKids – the group also trades as Banana Republic and Old Navy.
EGi News 10/01/02
