Gap June same-store sales down less than expected
CHICAGO (Reuters) - Gap Inc on Thursday posted a 7 percent decrease in June sales at stores open at least a year, a smaller decline than analysts had expected. and said profit margins rose significantly.
Analysts, on average, had been expecting the San Francisco-based clothing retailer to post a same-stores sales drop of 11.6 percent, according to Thomson Reuters Estimates.
Gap, operator of the Gap, Banana Republic and Old Navy chains, said total sales for the five weeks ended July 5 fell 2 percent to $1.41 billion.
The company is in the midst of a turnaround as it works to improve its product mix to stem years of sales slides. It is also cutting costs while controlling inventory to raise margins.
June same-store sales fell 5 percent at Gap stores, 10 percent at Old Navy stores, and 5 percent at Banana Republic stores.
Among the chains, Old Navy has struggled the most lately. It presented too many trendy, youthful looks this spring that put off the base of women shoppers looking for lower-cost, basic fashions for their families.
Weakness at the Old Navy chain prompted the departure of its president earlier this year. Improved merchandise is expected to hit stores this fall.
(Reporting by Brad Dorfman; editing by John Wallace)
