April same-store sales fell 12% globally, compared with April 2014, and 10% for the first quarter, compared with the year-ago first quarter. Gap store sales were down 15%, and neither of Gap’s other main store brands was able to post an April gain, with Old Navy same-store sales down 6% and Banana Republic same-store sales down 15%. In April of 2014, Gap’s global sales rose 9%.
April net sales were $1.21 billion for the four-week period ended May 2, 2015, compared with net sales of $1.33 billion for the four-week period ended May 3, 2014. For the first quarter of fiscal year 2015, Gap’s net sales decreased 3% to $3.66 billion, compared with $3.77 billion for the first quarter last year.
In the first quarter, same-store sales fell 4% globally, with Gap store sales down 10%, with Old Navy posting a 3% increase in sales and Banana Republic posting an 8% decline. In the first quarter of 2014, total sales slipped 1%.
In its announcement, Gap said that it expects to report first-quarter adjusted diluted earnings per share of $0.55 to $0.56, which is in line with current consensus estimates. The estimate includes a $0.02 per share benefit from a tax reversal. Gap is scheduled to release first-quarter earnings after markets close on May 21.
Old Navy’s sales have been keeping the Gap ship afloat, and when they dive, the ship takes on water.
Gap shares have dropped about 2.2% in Monday’s after-hours session and traded around $39.87, in a 52-week range of $35.46 to $46.85. The consensus price target on the shares is $43.43, and the high price target is $50.00.