Sales up at Gap Inc., expects strong earnings boost for Q3

SAN FRANCISCO — Gap Inc.appears to be on the upswing, reporting positive same-store sales across all of its divisions for both the third quarter and October. 

Net sales for the third quarter increased 8% to $3.86 billion compared with $3.59 billion for the third quarter last year. The company’s third quarter comparable sales were up 65 compared with a 5% decrease in the third quarter last year.

In addition, net sales for October were $1.22 billion compared with net sales of $1.14 billion for the same period last year. The company’s comparable sales for October 2012 were up 4% compared with a 6% decrease in October 2011.

“We’re very pleased with the continued momentum in the business across all brands in North America,” said Glenn Murphy, chairman and chief executive officer at Gap Inc. “Our focus remains on offering great product to our customers in order to sustain our business performance.”

By division, third-quarter comps were as follows:

  • Gap North America: positive 7% versus negative 6% last year

  • Banana Republic North America: positive 6% versus negative 1% last year

  • Old Navy North America: positive 9% versus negative 4% last year

  • International: negative 3% versus negative 10% last year

Comparable sales for October 2012 were as follows:

  • Gap North America: positive 6% versus negative 5% last year

  • Banana Republic North America: positive 5% versus positive 1% last year

  • Old Navy North America: positive 5% versus negative 9% last year

  • International: negative 2% versus negative 7% last year

Gap said it expects diluted earnings per share for the third quarter of fiscal year 2012 to be in the range of 61 cents to 63 cents, compared with 38 cents for the third quarter last year. This represents an increase of about 60% over last year.