US: Gap same-store sales rise 4% in October

5 November 2009 | Source: just-style.com

Strong sales at its Old Navy chain have helped US clothing retailer Gap Inc to a 4% jump in October comps and prompted third-quarter guidance above expectations.

The San Francisco based firm also said net sales for October were up 5% to $1.14bn, beating the $1.08bn posted in the same month last year.

Gap's chief financial officer Sabrina Simmons added that merchandise margins for the month were "significantly above last year."

By division, same-store sales were down 6% at Gap North America, rose 5% at Banana Republic North America, jumped 14% at Old Navy North America, and fell 4% at its international stores.

The results mean Gap now expects to deliver third quarter earnings per share of $0.42 to $0.44 - about 20% above last year's $0.35. This exceeds the current First Call estimate of $0.38.