Exhibit 99.1
GAP INC. REPORTS NOVEMBER SALES DOWN 2 PERCENT;
COMPARABLE STORE SALES DOWN 8 PERCENT
SAN FRANCISCO – November 30, 2006 –Gap Inc. (NYSE: GPS) today reported net sales of $1.40 billion for the four-week period ended November 25, 2006, which represents a 2 percent decrease compared with net sales of $1.43 billion for the same period ended November 26, 2005. The company’s comparable store sales for November 2006 decreased 8 percent compared with a 4 percent decrease in November 2005.
Comparable store sales by division for November 2006 were as follows:
| | • | | Gap North America: negative 7 percent versus negative 5 percent last year |
| | • | | Banana Republic North America: negative 1 percent versus negative 5 percent last year |
| | • | | Old Navy North America: negative 10 percent versus negative 2 percent last year |
| | • | | Gap International: negative 8 percent versus flat last year |
“Overall, November was a challenging month as negative traffic trends persisted,” said Sabrina Simmons, senior vice president, corporate finance, Gap Inc. “Promotional and markdown activities at Gap and Old Navy drove total company merchandise margins below last year, and we expect pressure on merchandise margins to continue into December.”
Year-to-date net sales of $12.41 billion for the 43 weeks ended November 25, 2006, decreased 2 percent compared with net sales of $12.63 billion for the same period ended November 26, 2005. The company’s year-to-date comparable store sales decreased 7 percent compared with a 5 percent decrease in the prior year.
The company reiterated that it expects inventory per square foot at the end of the fourth quarter to be up in the low-single digits compared with the prior year.
As of November 25, 2006, Gap Inc. operated 3,188 store locations compared with 3,132 store locations last year.
For more detailed information, please call 1-800-GAP-NEWS to listen to Gap Inc.’s monthly sales recording. International callers may call 706-634-4421.
December Sales
The company will report December sales on January 4, 2007.
Forward-Looking Statements
This press release and related recording contain forward-looking statements within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than those that are purely historical are forward-looking statements. Words such as “expect,” “anticipate,” “believe,” “estimate,” “intend,” “plan,” and similar expressions also identify forward-looking statements. Forward-looking statements include, without limitation, statements regarding: (i) merchandise margins in December 2006 and (ii) inventory per square foot at the end of the fourth quarter of fiscal 2006.
Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause the company’s actual results to differ materially from those in the forward-looking statements. These factors include, without limitation, the following: the risk that the company will be unsuccessful in gauging fashion trends and changing consumer preferences; the highly competitive nature of the company’s business in the U.S. and internationally and its dependence on consumer spending patterns, which are influenced by numerous other factors; the risk that the company will be unsuccessful in identifying and negotiating new store locations effectively; the risk that comparable store sales and margins will experience fluctuations; the risk that the company will be unsuccessful in implementing its strategic, operating and people initiatives; the risk that adverse changes in the company’s credit ratings may have a negative impact on its financing costs and structure in future periods; the risk that trade matters, events causing disruptions in product shipments from China and other foreign countries, or IT systems changes may disrupt the company’s supply chain or operations; and the risk that the company will not be successful in defending various proceedings, lawsuits, disputes, claims, and audits; any of which could impact net sales, costs and expenses, and/or planned strategies. Additional information regarding factors that could cause results to differ can be found in the company’s Annual Report on Form 10-K for the fiscal year ended January 28, 2006. Readers should also consult the company’s Quarterly Report on Form 10-Q for the fiscal quarter ended July 29, 2006.
These forward-looking statements are based on information as of November 30, 2006, and the company assumes no obligation to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.
Gap Inc. Copyright Information
All recordings made on 800-GAP-NEWS have been recorded on behalf of Gap Inc. and consist of copyrighted material. They may not be re-recorded, reproduced, retransmitted or rebroadcast without Gap Inc.’s express written permission. Your participation represents your consent to these terms and conditions, which are governed under California law.
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