US-based apparel giant Gap has reported a 2 percent increase in its net sales in the last quarter of this year. Sales in the third quarter rose to US$3.8 billion compared to last year’s sales. The company’s strong third quarter results have raised its full-year forecasts for net sales, gross margin and operating income.
Gap Inc. Chairman and CEO Richard Dixon said, “I am pleased to report that Gap Inc. has again recorded a strong quarter, increasing net sales for the fourth consecutive quarter, gaining market share for all brands and significantly increasing operating profit.”
Although store sales declined 2 percent in the third quarter, the company’s online sales grew 7 percent compared to last year’s performance.
The company’s gross margin increased 1.4 percentage points to 42.7 percent. Operating income reached US$355 million with a 9.3 percent operating margin. Gap reported net income of US$274 million.
The company’s apparel brands, including Old Navy, Gap, Banana Republic and Athleta, reported growth in their current third quarter sales reports. Dixon also expressed satisfaction with the company’s performance, highlighting growth across all brands and expanding operating margins.
