Gap Inc. reports net sales up 4 percent and comparable sales positive 3 percent for the holiday shopping season

SAN FRANCISCO, 2015-1-9 — /EPR Retail News/ — Gap Inc. (NYSE: GPS) today reported that net sales were up 4 percent and comparable sales were positive 3 percent for the November and December 2014 holiday shopping season, compared with last year.

“During November and December, we were pleased to achieve a positive 3 comp, led by Old Navy with a very strong 12 comp for the combined holiday months,” said Glenn Murphy, chairman and chief executive officer of Gap Inc.

December Sales Results

Net sales for the five-week period ended January 3, 2015 increased 2 percent to $2.10 billion, compared with net sales of $2.05 billion for the five-week period ended January 4, 2014.

Gap Inc.’s comparable sales for December 2014 were up 1 percent versus flat last year. Comparable sales by global brand for December 2014 were as follows:

  • Gap Global: negative 5 percent versus positive 1 percent last year
  • Banana Republic Global: flat versus flat last year
  • Old Navy Global: positive 8 percent versus negative 2 percent last year

Additional insight into Gap Inc.’s sales performance is available by calling 1-800-GAP-NEWS (1-800-427-6397). International callers may call 706-902-4949. The recording will be available at approximately 1:00 p.m. Pacific Time on January 8, 2015 and available for replay until 1:00 p.m. Pacific Time on January 16, 2015.

The company also noted a change to its monthly reporting cycle. Beginning with its January sales release, for the third month of each fiscal quarter, the company will shift the timing of its monthly sales release out by two business days, to the Monday of fiscal week two at 1:00 p.m. Pacific Time. The sales release for the third month of the quarter is typically when Gap Inc. provides preliminary earnings per share guidance. For the first and second months of each quarter, the company will continue to release sales results on Thursday of fiscal week one at 1:00 p.m. Pacific Time.

January Sales

The company will report January sales at 1:00 p.m. Pacific Time on Monday, February 9, 2015.

About Gap Inc.
Gap Inc. is a leading global retailer offering clothing, accessories, and personal care products for men, women, and children under the Gap, Banana Republic, Old Navy, Piperlime, Athleta, and Intermix brands. Fiscal year 2013 net sales were $16.1 billion. Gap Inc. products are available for purchase in more than 90 countries worldwide through about 3,200 company-operated stores, over 400 franchise stores, and e-commerce sites. For more information, please visit www.gapinc.com.

Gap Inc. reported that November 2014 net sales increased 6 percent compared with last year

SAN FRANCISCO, 2014-12-5 — /EPR Retail News/ — Gap Inc. (NYSE: GPS) today reported that November 2014 net sales increased 6 percent compared with last year. Net sales for the four-week period ended November 29, 2014 were $1.72 billion compared with net sales of $1.63 billion for the four-week period ended November 30, 2013.

“Old Navy delivered standout performance in November, with customers responding positively to the brand’s holiday assortment and marketing,” said Glenn Murphy, chairman and chief executive officer, Gap Inc. “With much of the holiday season still ahead, we remain focused on strong execution across all of our brands.”

November Comparable Sales Results

Gap Inc.’s comparable sales for November 2014 were up 6 percent versus a 2 percent increase last year. Comparable sales by global brand for November 2014 were as follows:

  • Gap Global: negative 4 percent versus positive 2 percent last year
  • Banana Republic Global: positive 2 percent versus negative 1 percent last year
  • Old Navy Global: positive 18 percent versus positive 3 percent last year

Additional insight into Gap Inc.’s sales performance is available by calling 1-800-GAP-NEWS (1-800-427-6397). International callers may call 706-902-4949. The recording will be available at approximately 1:00 p.m. Pacific Time on December 4, 2014 and available for replay until 1:00 p.m. Pacific Time on December 12, 2014.

December Sales

The company will report December sales on January 8, 2015.

About Gap Inc.
Gap Inc. is a leading global retailer offering clothing, accessories, and personal care products for men, women, and children under the Gap, Banana Republic, Old Navy, Piperlime, Athleta, and Intermix brands. Fiscal year 2013 net sales were $16.1 billion. Gap Inc. products are available for purchase in more than 90 countries worldwide through about 3,200 company-operated stores, over 400 franchise stores, and e-commerce sites. For more information, please visit www.gapinc.com.

Gap Inc. announces the promotion of two successful current executives to become global brand presidents for Gap and Banana Republic

Global brand presidents named: Andi Owen to lead Banana Republic and Jeff Kirwan to take over Gap

SAN FRANCISCO, 2014-11-21 — /EPR Retail News/ — With an eye towards 2015, Gap Inc. (NYSE: GPS) today announced the promotion of two successful current executives, with 35 years of combined company experience between them, to become global brand presidents for Gap and Banana Republic.

The moves were orchestrated by Art Peck as he prepares to take on the role of chief executive officer of Gap Inc. in February, with the full support of current chairman and chief executive officer Glenn Murphy.

“We’ll start 2015 with a management team comprised of both established executives and the next generation of brand leaders ready for the next generation of customers,” said Peck.  “We’ve provided a transition period that allows our teams to deliver a successful holiday, while gearing up for a future where great product, showcased seamlessly across physical and digital experiences, consistently delights our customers.”

Jeff Kirwan, 48, who has reported to Murphy for the past three years as president of greater China for Gap Inc., will become Global President for Gap brand in December following a brief transition period.  Kirwan succeeds Stephen Sunnucks, who will leave the company on December 19, after steering the growth of its namesake brand to almost 50 countries over the past decade.

Under Kirwan’s leadership in China, Gap has deployed an aggressive e-commerce strategy, coupled with opening 100 stores in the region in just four years.  Over the past decade with Gap Inc., Kirwan has succeeded in roles of increasing responsibility at Gap and Old Navy, with an expertise in driving growth, retail operations, and brand development.

Andi Owen, 49, who currently leads the Gap Outlet division, will become Global President for Banana Republic, effective January 5.  She succeeds Jack Calhoun, who will depart from the company on February 1 after working with Owen during the transition.  Calhoun, who led the brand for eight years, is credited with pioneering innovative concepts while creating an impressive global economic model for Banana Republic.

Over nearly 25 years with the company, Owen has thrived in many leadership roles within merchandising, online, and stores.  She has spent 19 years working within Banana Republic, rising from management positions in the field to successfully leading the Banana Republic Factory Store business before taking on her current assignment as EVP of Global Gap Outlet.

“These are important changes within the company, and I’ve been impressed with both Jeff and Andi’s development during our work together these past eight years.  We’ve prepared leaders, with experience across all aspects of the global business, who are ready and eager for the challenges and the opportunities ahead,” said Gap Inc. Chairman and CEO Glenn Murphy.

Murphy added, “Over the past decade, both Steve and Jack helped make Gap Inc. a much stronger and more global company. We appreciate their hard work and passion for our brands, people, and customers.”

Owen and Kirwan will report to Peck in 2015.

“Over the past decade, I’ve worked with Jeff and Andi and seen them in action.  They each bring the creativity, tenacity, and exceptional leadership qualities necessary for these roles, and, importantly, they have consistently delivered results for our brands and company,” Peck added.

Webcast and Conference Call Information

The company will host a conference call with investors and analysts to discuss the company’s third quarter 2014 results and leadership announcement starting at approximately 2:00 p.m. Pacific Time today.  Katrina O’Connell, vice president of Corporate Finance and Investor Relations at Gap Inc., will host the call and be joined by Sabrina Simmons, Gap Inc. chief financial officer, Glenn Murphy, Gap Inc. chairman and chief executive officer and Art Peck, president of Gap Inc. Growth, Innovation & Digital division.

The conference call can be accessed by calling 1-855-5000-GPS or 1-855-500-0477 (participant passcode:1609362). International callers may dial 913-643-0954. The webcast can be accessed at www.gapinc.com.

About Gap Inc.
Gap Inc. is a leading global retailer offering clothing, accessories, and personal care products for men, women, and children under the Gap, Banana Republic, Old Navy, Piperlime, Athleta, and Intermix brands. Fiscal year 2013 net sales were $16.1 billion. Gap Inc. products are available for purchase in more than 90 countries worldwide through about 3,200 company-operated stores, over 400 franchise stores, and e-commerce sites. For more information, please visit www.gapinc.com.

Gap Inc. selects Art Peck, the president of its Growth, Innovation and Digital division to succeed Glenn Murphy as the company’s next CEO

Board names proven company veteran Peck to become CEO in early 2015 as Murphy transitions from the company; Bob Fisher to become Chairman of the Board

SAN FRANCISCO, 2014-10-10— /EPR Retail News/ — Gap Inc. today announced that Art Peck, the president of its Growth, Innovation and Digital division, has been selected by the Board of Directors to succeed Glenn Murphy as the company’s next chief executive officer, effective February 1, 2015. Murphy and Peck have worked side-by-side for the better part of a decade as Gap Inc.  dramatically improved its financial performance while expanding globally.

Following seven successful years in his role, Murphy made the personal decision to retire from the company at the end of the fiscal year, allowing for a smooth and seamless leadership transition. Since the end of 2007, Gap Inc. has delivered exceptional financial results, with an impressive six-year compounded annual growth rate (CAGR) on earnings per share of 17 percent and a total shareholder return of more than 160 percent. Under Murphy’s stewardship, the company acquired new brands and globalized its business by expanding store locations from about 10 to 50 countries, including China.

“Today, Gap Inc. is a formidable global fashion retailer with a strong foundation in place for long-term growth, therefore making this an appropriate inflection point for me to pass the baton to a leader who will take our portfolio of brands to even greater heights,” Murphy said. “With consumer expectations rapidly evolving, Art is the right leader at the right time to build on our success and ensure a compelling experience for our customers across both our physical and digital channels.”

Peck has delivered significant results for Gap Inc. in a variety of brand, strategy and operational roles since joining the company in 2005. He is currently responsible for creating the company’s omni-channel and digital strategies, and guiding the emerging Athleta, Intermix and Piperlime brands.

The company’s commitment to a robust succession process enabled the Board to evaluate, over time, many impressive internal and external candidates. The Board unanimously agreed that Peck is the ideal leader for the role.

“We are pleased to have an internal leader with Art’s proven track record and management capabilities to chart the path for the company to further compete, win and grow,” said Bobby Martin, lead independent director for Gap Inc.’s Board of Directors. “Art has created substantial value for the company over the past decade, and the Board is confident he will further increase long-term returns for our shareholders. The Murphy era at Gap Inc. will be long remembered for successful global expansion, strategic investments in key growth areas, and the consistent shareholder returns that our management team delivered.”

Among his various roles within the company, Peck led the North American division for Gap brand in 2011 and 2012, overseeing the product resurgence that successfully improved its business results. Previously, as head of the outlet business for Gap and Banana Republic, Peck grew earnings and sales for the divisions and opened outlet stores globally. In his first few years with the company, he led the development of the global strategy that continues to guide the company, and established and launched its first franchise markets.

“I’m honored to be given the opportunity to lead this company with such powerful brands and incredible talent – a combination that sets us apart globally,” Peck said. “Our success will be based upon presenting brand-right, emotional product to our customers, both in stores and online. Building upon the foundation Glenn has established, we will be focused on continuing to execute our strategy to drive long-term shareholder value.”

In his leadership roles, Peck is known for managing and developing people, including many of the creative, store and operational leaders across the company. Prior to joining Gap Inc., he spent more than 20 years at The Boston Consulting Group where he rose to senior partner, with a focus on consumer technology, media and entertainment, consumer products, and retail.

As part of the transition, Bob Fisher, who has a 35-year history with the company founded by his parents, will become non-executive Chairman of the Board, and Peck will join the Board, effective February 1, 2015.

“Art Peck is an inspiring leader who thinks big, brings out the best in people, and understands how retail is changing today,” commented Fisher. “We owe a debt of gratitude to Glenn for his leadership, vision and selfless devotion to the company, and he’s created the path forward for the smooth and seamless transition our shareholders and employees deserve.”

Conference Call

The company will host a conference call with investors and analysts to discuss today’s leadership announcement starting at 1:30 p.m. Pacific Time. Murphy, Peck, Fisher and Chief Financial Officer Sabrina Simmons will participate in the call, hosted by Katrina O’Connell, vice president of Investor Relations. The conference call can be accessed by calling 1-855-5000-GPS or 1-855-500-0477 (participant passcode: 2638501). International callers may dial 913-643-0954.

Forward-Looking Statements

This press release and related investor conference call contain forward-looking statements within the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements other than those that are purely historical are forward-looking statements. Words such as “expect,” “anticipate,” “believe,” “estimate,” “intend,” “plan,” “project,” and similar expressions also identify forward-looking statements. Forward-looking statements include statements regarding increasing long-term returns, driving long-term shareholder value, and the size of the China market for the company.

Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause the company’s actual results to differ materially from those in the forward-looking statements. These factors include, without limitation, the following:

  • the risk that changes in global economic conditions or consumer spending patterns could adversely impact the company’s results of operations;
  • the highly competitive nature of the company’s business in the United States and internationally;
  • the risk that the company will be unsuccessful in gauging apparel trends and changing consumer preferences;
  • the risk that if the company is unable to manage its inventory effectively, its gross margins will be adversely affected;
  • the risks to the company’s efforts to expand internationally;
  • the risks to the company’s reputation or operations associated with importing merchandise from foreign countries, including failure of the company’s vendors to adhere to its Code of Vendor Conduct;
  • the risk that comparable sales and margins will experience fluctuations;
  • the risk that our investments in omni-channel shopping initiatives may not deliver the results the company anticipate; and
  • the risk that changes in the regulatory or administrative landscape could adversely affect our financial condition, strategies, and results of operations.

Additional information regarding factors that could cause results to differ can be found in the company’s Annual Report on Form 10-K for the fiscal year ended February 1, 2014, as well as the company’s subsequent filings with the Securities and Exchange Commission.

These forward-looking statements are based on information as of October 8, 2014. The company assumes no obligation to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.

About Gap Inc.
Gap Inc. is a leading global retailer offering clothing, accessories, and personal care products for men, women, and children under the Gap, Banana Republic, Old Navy, Piperlime, Athleta, and Intermix brands. Fiscal year 2013 net sales were $16.1 billion. Gap Inc. products are available for purchase in more than 90 countries worldwide through about 3,200 company-operated stores, almost 400 franchise stores, and e-commerce sites. For more information, please visit www.gapinc.com.

Gap Inc.’s September 2014 net sales up 1 percent compared with last year

SAN FRANCISCO, 2014-10-10— /EPR Retail News/ — Gap Inc. (NYSE: GPS) today reported that September 2014 net sales were up 1 percent compared with last year. Net sales for the five-week period ended October 4, 2014 were $1.48 billion compared with net sales of $1.46 billion for the five-week period ended October 5, 2013.

“September proved to be more challenging than we expected,” said Glenn Murphy, chairman and chief executive officer, Gap Inc. “While Old Navy and Banana Republic are performing well, we are working aggressively to ensure our entire portfolio of brands delivers to its potential.”

September Comparable Sales Results

Gap Inc.’s comparable sales for September 2014 were flat versus a 3 percent decrease last year. Comparable sales by global brand for September 2014 were as follows:

  • Gap Global: negative 3 percent versus negative 3 percent last year
  • Banana Republic Global: positive 2 percent versus negative 5 percent last year
  • Old Navy Global: positive 1 percent versus negative 2 percent last year

The company noted that it expects gross margins for the third quarter of fiscal year 2014 to be moderately below the prior year driven by underperformance at Gap brand. In addition, after having leveraged operating expenses by 1 percentage point in the first half of fiscal year 2014, the company continues to manage expenses tightly. However, as noted during the company’s second quarter 2014 earnings call, there are a number of factors that make year-over-year expense comparisons more difficult in the second half of fiscal year 2014. As a result, the company expects third quarter fiscal year 2014 operating expenses to be approximately 8 percent above the third quarter of fiscal year 2013.

Additional insight into Gap Inc.’s sales performance is available by calling 1-800-GAP-NEWS (1-800-427-6397). International callers may call 706-902-4949. The recording will be available at approximately 1:00 p.m. Pacific Time on October 8, 2014 and available for replay until 1:00 p.m. Pacific Time on October 15, 2014.

October Sales

The company will report October sales on November 6, 2014.

Forward-Looking Statements

This press release and related sales recording contain forward-looking statements within the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements other than those that are purely historical are forward-looking statements. Words such as “expect,” “anticipate,” “believe,” “estimate,” “intend,” “plan,” “project,” and similar expressions also identify forward-looking statements. Forward-looking statements include statements regarding:

  • gross margins for the third quarter of fiscal year 2014;
  • expenses for the third quarter and second half of fiscal year 2014; and
  • marketing expenses for the third quarter of fiscal year 2014.

Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause the company’s actual results to differ materially from those in the forward-looking statements. These factors include, without limitation, the following:

  • the risk that changes in global economic conditions or consumer spending patterns could adversely impact our results of operations;
  • the highly competitive nature of our business in the United States and internationally;
  • the risk that we or our franchisees will be unsuccessful in gauging apparel trends and changing consumer preferences;
  • the risk that if we are unable to manage our inventory effectively, our gross margins will be adversely affected;
  • the risks to our business, including our costs and supply chain, associated with global sourcing and manufacturing;
  • the risks to our reputation or operations associated with importing merchandise from foreign countries, including failure of our vendors to adhere to our Code of Vendor Conduct;
  • the risk that our franchisees’ operation of franchise stores is not directly within our control and could impair the value of our brands;
  • the risk that comparable sales and margins will experience fluctuations;
  • the risk that the failure to attract and retain key personnel could have an adverse impact on our results of operations;
  • the risk that we are subject to data or other security breaches that may result in increased costs, violations of law, significant legal and financial exposure, and a loss of confidence in our security measures, which could have an adverse effect on our results of operations and our reputation;
  • the risk that natural disasters, public health crises, political crises, or other catastrophic events could adversely affect our operations and financial results, or those of our franchisees or vendors; and
  • the risk that we will not be successful in defending various proceedings, lawsuits, disputes, claims, and audits.

Additional information regarding factors that could cause results to differ can be found in the company’s Annual Report on Form 10-K for the fiscal year ended February 1, 2014, as well as the company’s subsequent filings with the Securities and Exchange Commission.

These forward-looking statements are based on information as of October 8, 2014. The company assumes no obligation to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.

About Gap Inc.
Gap Inc. is a leading global retailer offering clothing, accessories, and personal care products for men, women, and children under the Gap, Banana Republic, Old Navy, Piperlime, Athleta, and Intermix brands. Fiscal year 2013 net sales were $16.1 billion. Gap Inc. products are available for purchase in more than 90 countries worldwide through about 3,200 company-operated stores, almost 400 franchise stores, and e-commerce sites. For more information, please visit www.gapinc.com.