Gap Inc. Backs Full-Year Forecast
New York City, Gap Inc. on Wednesday affirmed its full-year financial estimate, adding that results were approaching the high end of its forecast.
“We remain comfortable with our earnings per share guidance of $1.12 to $1.17, and we are trending to upper end of that range,” said Gap CFO Byron Pollitt, speaking at an investor conference held by SG Cowan & Co. in New York City.
Gap last Thursday reported that same-store sales fell 9% in December; its 13th same-store sales decrease in the past 14 months. Pollitt attributed the decline to poor customer traffic at Gap’s three divisions.
“Over the past several seasons, our product efforts got off track,” Pollitt said. “Christmas and holiday continued to be difficult. At the same time however, tight inventory management drove merchandise margins slightly above prior year for the month.”