Gap reported positive comps
Gap (GPS) reported total revenues of $3.8 billion in 2Q17 and beat the consensus by $30 million. On a YoY (year-over-year) basis, the company’s top line fell 1.4% compared to the same period last year—mainly due to international store closures.
Gap’s sales comps rose 1% during the quarter—compared to a 2% fall in the same period last year.
“With a third consecutive quarter of comp sales growth, we are seeing our investments in product, customer experience, and brand equity begin to pay off,” said Art Peck, Gap’s president and CEO.
Positive Old Navy comps
The increase in Gap’s 2Q17 comparable store sales was driven by a 5% increase in Old Navy comps. Banana Republic and Gap Global’s comps were weak and fell 5% and 1%, respectively, during the quarter.
However, all three brands performed better than last year. In 2016, Gap and Banana Republic’s sale comps fell 3% and 9%, respectively, while Old Navy remained flat.
How did other apparel peers perform?
Despite ongoing retail and currency headwinds, many of the apparel players posted decent quarterly results this season. Companies like Ralph Lauren (RL), Michael Kors (KORS), and VF Corp (VFC) have outperformed Wall Street’s expectations.
Michael Kors reported total sales of $952 billion (-3.7% YoY) and beat analysts’ estimates by $34 million. Ralph Lauren reported $1.35 billion in total sales and beat estimates by $10 million. VF Corp reported a top line at $2.4 billion and beat analysts’ expectations by $70 million.
Investors wanting to get exposure to Gap through ETFs can consider the PowerShares High Yield Equity Dividend Achievers Portfolio (PEY). PEY invests 2.1% of its holdings in Gap.