Apparel chain Gap Inc reported its seventh straight quarterly sales decline as demand for its Gap and Banana Republic brands remained sluggish. The company’s net income fell to $204 million, or 51 cents per share, in the third quarter ended Oct. 29 from $248 million, or 61 cents per share, a year earlier.
Gap said same-store sales fell 3 percent in the quarter, in line with analysts’ estimate, according to Consensus Metrix. By brand, same-store sales at Gap and Banana Republic slumped 8 percent, while, Old Navy reported a 3 percent increase in same-store sales.
Net sales fell to $3.80 billion from $3.86 billion.
CEO Art Peck said, “I’m pleased to see improved product across our brands, as well as areas of healthier merchandise margins, even against the backdrop of challenging traffic trends during the quarter.”
Looking forward to full year 2016, Gap continues to expects adjusted earnings of $1.87 to $1.92 per share.
GPS closed Thursday’s trading at $30.71, up $0.28 or 0.92% on the NYSE. The stock, however, dropped $1.51 or 4.92% in the after-hours trade.