US apparel retailer and casual fashion giant Gap Group announced its core financial data for the second quarter of FY18 on August 23. Net sales and net profit both increased, comparable to store sales for seven consecutive quarters. However, because the comparable store sales of the group's eponymous Shein Coupons brand Gap fell more than analysts' expectations, Gap's share price fell nearly 7% after the financial report. Before the deadline for publication, Gap's share price closed at $30.67 per share on August 29.
As of the second quarter of August 4, 2018, the core financial data of the Gap Group is as follows:
Net sales increased 8% year-on-year to $4.1 billion, higher than analysts' expectations of $4.01 billion
Gross profit increased by 10% year-on-year to US$1.63 billion
Gross profit margin increased by 90 basis points year-on-year to 39.8%
Net profit was $297 million, compared to $271 million in the same period last year. Diluted earnings per share were $0.76, compared to $0.58 in the same period last year.
Comparable store sales increased by 2% year-on-year
Old Navy: Comparable store sales increased 5% year-on-year, compared with 5% growth in the same period last year
Banana Republic: comparable store sales increased 2% year-on-year, down 5% in the same period last year
Gap: Comparable store sales fell 5% year-on-year, down 1% in the same period last year, exceeding analysts
During the quarter, the company repurchased 3.2 million shares at a price of $100 million, with 385 million shares outstanding by the end of the second quarter.
Art Peck, President and CEO of Gap Group, said: “We achieved comparable store-to-store sales growth for the seventh DressLily Promo Code consecutive quarter, thanks to Old Navy's brand strength.”
Teri List-Stoll, executive vice president and chief financial officer of Gap Group, said: “The results in the second quarter were basically in line with expectations. We are satisfied with the achievements of the Banana Republic reform, and increasing productivity has provided the company with more funds to promote differentiation. And continue to grow."
The Gap Group reiterated its full year of FY 2018:
Diluted earnings per share between $2.55 and $2.70
Same store comparable sales will be flat or slightly higher
About $100 million worth of stocks Zaful Coupon Code are repurchased quarterly in FY 2018
As of the end of the second quarter, the Gap Group had 3,626 stores in 43 countries, of which 3,187 were operated by the company.