Gap reported first quarter fiscal year 2015 net income was $239 million or $0.56 per share on a diluted basis.
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The company also reaffirmed its full-year earnings per share guidance to be in the range of $2.75 to $2.80.
During the first quarter, Old Navy delivered positive 3 percent comparable sales results, on top of three consecutive years of growth, as customers responded favorably to the brand’s product assortments and marketing campaigns.
For the first quarter of fiscal year 2015, Gap Inc.’s net sales decreased 3 percent to $3.66 billion compared with $3.77 billion for the first quarter last year.
On a constant currency basis, net sales for the first quarter of fiscal year 2015 decreased 1 percent compared with last year. In calculating the net sales change on a constant currency basis, current year foreign exchange rates are applied to both current year and prior year net sales. This is done to enhance the visibility of underlying sales trends, excluding the impact of foreign currency exchange rate fluctuations.
The company noted that the translation of net sales in foreign currencies into U.S. dollars negatively impacted the company’s reported sales for the first quarter of fiscal year 2015 by about $90 million, primarily due to the weakening Japanese yen and Canadian dollar.
In addition, as previously communicated, net sales during the first quarter of fiscal year 2015 were negatively impacted by delayed merchandise receipts at West Coast ports.
The company reaffirmed its guidance for full-year 2015 diluted earnings per share to be in the range of $2.75 to $2.80.
First quarter fiscal year 2015 diluted earnings per share were $0.56 compared with diluted earnings per share of $0.58 in the first quarter of fiscal year 2014.
The company noted that the estimated impact from foreign exchange reduced the company’s diluted earnings per share growth rate in the first quarter of fiscal year 2015 by about 3 percent.1
Additionally, as previously communicated, the company’s diluted earnings per share for the first quarter of fiscal year 2015 includes a non-recurring benefit of about $0.02 related to a reversal of tax-related interest expense. ■