Old Navy Same-Store Sales Plunge 27%
San Francisco Gap Inc. said that sales fell 12% in March, and its same-store sales fell 18%. But same-store sales at its Old Navy division took the biggest fall, dropping 27% in the five weeks ended April 5. A year ago same-store sales grew 10% in that unit.
Gap brought in sales of $1.37 billion in the five-week period, down from sales of $1.55 billion a year ago in the same period.
Same-store sales fell in every Gap division, even Banana Republic, which has lately done the best of the company’s units.
Banana Republic’s same-store sales fell 8% and international same-store sales fell 3%. Same-store sales in Gap’s North America business fell 14%.
JCPenney reports weak March sales
PLANO, Texas JCPenney reported that comparable-store sales decreased 12.3% for the five weeks ended April 5, consistent with the company’s most recent guidance. This compares with an 11% increase in last year’s period. Total sales in March decreased 10.3%.
According to the company, sales declines during the month were broad-based across most merchandise categories and areas of the country, including soft sales over the Easter period. Customers are responding positively to new American Living product across all categories in which it is available, and Sephora inside JCPenney continues to experience strong sales results.
Management’s guidance for the four-week period ending May 3, is for a mid- to high-single digit decrease in comparable-store sales, compared to a 3.4% decrease in last year’s April period. This guidance reflects the expectation for a continuation of recent trends and the benefit from an extra day of selling in this year’s April period.
Kohl’s March comps tumble
MENOMONEE FALLS, Wis. Kohl’s reported today that sales for the five-week period ended April 5 decreased 7.9% over the five-week period ended April 7. On a comparable-store basis, sales decreased 15.5%. For the nine weeks ended April 5, total sales decreased 3.2% and comparable-store sales decreased 11.1%.
Larry Montgomery, Kohl’s chairman and ceo, commented, “Sales in weather-sensitive businesses such as shorts, tanks, polos and sandals experienced significant declines on a comparable store basis, contributing to our sales shortfall. We have been conservative in our inventory planning and expense management and will continue to do so until the environment improves.”
The company now expects its first quarter comparable sales to be in the negative high-single digit range and its earnings to be 40 cents to 42 cents per diluted share.