Gap raises forecast | RetailDetail

Gap raises forecast

Gap raises forecast

American fashion retailer Gap has increased its 2014 forecast after a higher-than-expected profit in its second quarter, especially thanks to excellent Old Navy sales.

Old Navy leads the pack


Old Navy Stores, a cheaper brand focused on an older audience than Gap and Banana Republic, managed a 4 % like-for-like turnover increase in its second quarter. Old Navy’s total turnover reached 1.622 billion dollars (1.2 billion euro), compared to 1.540 billion dollars the prior year.


Gap and Banana Republic’s numbers were not as positive: Gap’s like-for-like turnover dropped 5 %, while Banana Republic’s remained level. Gap’s total turnover, for the brand itself, dropped slightly from 1.471 billion dollars to 1.469 billion dollars (1.1 billion euro). Banana Republic’s total turnover grew from 686 million dollars to 704 million dollars (530 million euro).


Gap’s total turnover grew 3 % to 3.98 billion dollars (nearly 3 billion euro), while like-for-like turnover remained level. Net profit reached 332 million dollars (250 million euro), compared to the 303 million dollars a year before. That result has prompted the company to raise its full-year forecast to a 2.95 – 3 dollar profit per share.


Better than competition


Gap’s like-for-like turnover drop was mostly because of lousy results at several large American retailers. Gap had 3,594 stores worldwide at the end of the second quarter, while it hopes to open its first 2 stores in India early next year. It hopes to get 40 stores in India after that.


Gap still easily outperforms its competitors. Aeropostale’s turnover dropped 13 % in the second quarter, while American Apparel’s like-for-like turnover dropped 6 % in the second quarter.

Questions or comments? Please feel free to contact the editors

Délifrance joins FFC's portfolio


Dutch Franchise Friendly ConceptsDélifrance Benelux acquisition is in full swing. The franchise organization will obtain the French sandwich chain’s Benelux master franchisee on 1 April.

IKEA has developed actual "bug burger"


SPACE10, furniture giant Ikea’s innovation lab, will present a healthy alternative to the classic hamburger, where the meat is replaced by red beets and mealworm. It is also working on a “dogless hotdog”;

Supermarkets' price difference with neighbouring countries grows


Belgian supermarkets are increasingly more expensive than those in neighbouring countries according to Prijzenobservatorium’s research. Shoppers in France, Germany and the Netherlands quickly pay 10 % less.

Delhaize opens innovative new store in Bucharest


Romanian supermarket chain Mega Image, part of Belgian-Dutch Ahold Delhaize, has opened a new concept store in the centre of Bucharest. The store claims to offer a new level of shopping experience in the heart of the city.

“Meat industry ready for disruption”


Consumers are ready, the technology is rapidly advancing and investors see the potential: meat replacement turnover will reach 4.2 billion euro worldwide by 2020. The major multinationals are now also on board.

Aldi wants to open stores in China


Aldi has had an online presence in China for a year now, but the German discounter is now planning to open a physical store network there as well. Within a few years’ time, it should have fifty different stores.

Back to top