US-based apparel giant Gap has registered a 2 per cent rise in its net sales of this year’s final quarter. The Q3 sales rose to US $ 3.8 billion compared to the previous year’s sales. The company’s strong third-quarter results have led to an upward revision of its full-year forecasts for net sales, gross margin, and operating income.
Gap Inc. president and CEO Richard Dickson said, “I’m pleased to report that Gap Inc. had again another strong quarter, increasing net sales for the fourth consecutive quarter, gaining market share for all brands, and significantly increasing operating profit.”
Even though the store sales dropped by 2 per cent in Q3, online sales of the company went up by 7 per cent compared to previous year’s performance.
The company’s gross margin improved by 1.4 percentage points to 42.7 per cent. Operating income reached US $ 355 million, with a 9.3 per cent operating margin. Gap reported net income of US $ 274 million.
The company’s apparel brands including Old Navy, GAP, Banana Republic and Athleta, have all registered a rise in their current Q3 sales reports. Dickson also expressed satisfaction with the company’s performance, highlighting the growth across all brands and the expansion of operating margins.
