Analysis Of Gap Inc Sales For 2017

GAp logoGap Inc is an American worldwide clothing and accessories retailer head quartered in California, USA. It has recently released its fourth quarter and fiscal year 2017. We analyse in the report below,  the net sales both region wise and also brand wise for Gap Inc : (Gap Global, Old Navy Global , Banana Republic Global) for the quarter and fiscal year 2017 . Also the stores information has been given at the end of the analysis.

“Our strong positive comp and margin expansion during the critical holiday quarter affirms our balanced growth strategy,” said Art Peck, president and chief executive officer, Gap Inc. “Our outlook for 2018 demonstrates confidence in our strategy and a meaningful step up in earnings capacity for the company.” “We are positioning the company for long term growth,” said Teri List-Stoll, executive vice president and chief financial officer, Gap Inc. “In addition to leveraging productivity initiatives to fund investments in the business, recent tax reform changes provide a meaningful increase in future earnings.”

A. Net Sales In Fourth Quarter 2017

The table below shows the nets sales of different brands of Gap Inc. The net sales of Gap Global  was USD 1.61 billion and the nets sales of Old Navy Global  was  USD 2.16 billion which was the leading brand, the least sales was of Banana Republic Global was just 0.73 billion usd, the other segments contributed 0.28 billion usd, the total sales was 4.78 billion usd for the fourth quarter of 2017.Fourth quarter fiscal year 2017 net sales increased 8 percent to $4.8 billion and fiscal year 2017 net sales were $15.9 billion.

<span;”>Regions

(Q4 |2017)

Gap Global

(In Million USD)

Old Navy Global

(In Million USD)

Banana Republic Global

(In Million USD)

Others

(In Million USD)

Total

(In Million USD)

% Net Sales
U.S 928 1,961 621 283 3,793 80
Canada 121 160 69 1 351 7
Europe 191 0 4 0 195 4
Asia 337 16 27 0 380 8
Other Regions 29 24 6 0 59 1
Total 1,606 2,161 727 284 4,778 100

Sales Analysis Of Gap Inc For Fourth And Full Year 2017

The percentage net sales contribution by different brands of Gap Global Inc, in fourth quarter of 2017 shows the significant contribution was made by Old Navy Global of about 45 %  of the total sales . Similarly,  Gap global and Banana Republic  contributed 34 % and 15 % in total  sales, the others brands contributed just 6 % in Net Sales.

Sales Analysis Of Gap Inc For Fourth And Full Year 2017

The percentage net sales in different countries for the fourth quarter of 2017 shows that  out of the four countries U.S.A was leading market with 80 % in nets sales the second largest market was in Asia with 8 % whereas Canada was close to Asia with 7 % . Europe and other regions contributed 4 % and 1  % respectively. Gap has , despite efforts, not been able to make significant inroads into the European and Asian markets ,where other leading retailers like H&M , Zara etc are growing.

Sales Analysis Of Gap Inc For Fourth And Full Year 2017

B. Net Sales For The Full Year 2017

The net sales in different countries for Gap Inc for the full year 2017 again , expectedly,  shows that U.S.A was largest in sales with USD 12.57 billion , the second largest sales was made in  Asia with USD 1.26 billion but just 8% of sales,  , similarly Canada contributed 1.17 billion usd , Europe was the least contribution in net sales with just about 4% of total sales.

Regions

(Full Year 2017)

Gap Global

(In Million USD)

Old Navy Global

(In Million USD)

Banana Republic Global

(In Million USD)

Others

(In Million USD)

Total

(Million USD)

% Net Sales
U.S 3,065 6,570 2,017 916 12,568 80
Canada 398 547 225 3 1,173 7
Europe 626 0 15 0 641 4
Asia 1,117 50 96 0 1,263 8
Other Regions 112 71 27 0 210 1
Total 5,318 7,238 2,380 919 15,855 100

The net sales for different brands for the full year 2017 shows that the Old Navy Global contributes  largest in sales with 7.24 billion usd, the second largest contribution was made by Gap Global with 5.32 billion usd similarly Banana Republic contributes 2.39 billion usd , the total sales of different brands for the full year 2017 was 15.86 billion usd .

Sales Analysis Of Gap Inc For Fourth And Full Year 2017

Thus Old Navy Global contributed 46 % of the total sales followed by Gap Global at 33 %

Sales Analysis Of Gap Inc For Fourth And Full Year 2017

The Net sales for the different countries for the full year 2017 again shows that U.S.A contributes the largest sales of different brands of Gap Inc, with 80% of the total sales contribution , Asia was the second largest contributor and close to it was Canada with 7 %, Europe contributed least margin in net sales .

Sales Analysis Of Gap Inc For Fourth And Full Year 2017

C. Net Sales Of Different Brands

1. Gap Global

The net sales of one of the brand of Gap inc is Gap Global , the net sales of Gap global in USA shows that USA is the leading market for Gap Global with 0.93 billion usd , Asia was the second largest with 0.34 billion usd , similarly  Europe contributes 0.19 billion usd and the little more is contributed by Canada with 0.12 billlion usd .

Sales Analysis Of Gap Inc For Fourth And Full Year 2017

The net sales of Gap Global for different countries in 2017 shows that U.S.A contributes the largest in net sales with USD 3.07 billion followed by Asia with USD 0.11 billion . Similarly Canada and Europe  contributed 0.40 billion usd and 0.63 billion usd in the net sales.

Sales Analysis Of Gap Inc For Fourth And Full Year 2017

2. Old Navy

The net sales of Old Navy Global for different countries in the fourth quarter of 2017 shows that USA was the major market with USD 1.96 billion usd , Canada was the second largest market with 0.16 billion usd ,the least contribution was made by  Asian regions.

Sales Analysis Of Gap Inc For Fourth And Full Year 2017

Sales Analysis Of Gap Inc For Fourth And Full Year 2017

3. Banana Republic

The net sales for Banana Republic Global for different countries in the fourth quarter of 2017 shows that the USA had the major market of 0.62 billion usd and the second largest market was Canada with 0.07 billion usd. Europe and Asia had considerable low contribution to the net sales for the fourth quarter 2017.

Sales Analysis Of Gap Inc For Fourth And Full Year 2017

Sales Analysis Of Gap Inc For Fourth And Full Year 2017

 D. Net Sales In Different Countries

1. U.S.A

In the USA regions the sales for the fourth quarter of 2017 shows that, Old Navy Global was largest brand for Gap with USD 1.96 billion of sales . Gap Global was the second and followed by Banana Republic.

Sales Analysis Of Gap Inc For Fourth And Full Year 2017

Sales Analysis Of Gap Inc For Fourth And Full Year 2017

2. Canada

The sales in Canada for the different brands for the fourth quarter of 2017 shows that Old Navy Global contributes the largest sales with 0.16 billion usd of sales followed closely by  Gap Global and there was a relatively less contribution by Banana Republic Global.

Sales Analysis Of Gap Inc For Fourth And Full Year 2017

Sales Analysis Of Gap Inc For Fourth And Full Year 2017

3. Europe

It is surprising to see that In the Europe region there were only two brands which contributed in sales for the fourth quarter : Gap Global and Banana Republic Global. Old Navy is nowhere to be seen !

Sales Analysis Of Gap Inc For Fourth And Full Year 2017

The net sales in Europe for different brands in 2017 shows that Gap Global contributes 0.626 billion usd whereas Banana Republic Global contributes 0.015 billion usd . This shows that Old Navy has actually no presence or standing in Europe.

Sales Analysis Of Gap Inc For Fourth And Full Year 2017

4. Asia

The net sales in Asia for different brands for the fourth quarter of 2017 shows that Gap Global was the largest contributor in sales followed by Banana Republic . Old Navy has a small presence which again shows that besides US market , Old Navy struggles in other regions and is not able to achieve the sales.  Sales Analysis Of Gap Inc For Fourth And Full Year 2017

Sales Analysis Of Gap Inc For Fourth And Full Year 2017

c. Stores Informations (Stores In Numbers)

The stores information for the fourth quarter of 2017  was as follows. The stores count given below shows that for Gap Inc, North America had the most stores count of 810 stores and also largest closure of 27 stores whereas Asia had a stores count of 313 stores  in fourth quarter of 2017 with most openings of 28 stores.

Old Navy had maximum concentration of stores in North America with  a count of 1,066 stores count  and also max openings of 12 stores. Old Navy is definitely very weak in Asia !

Banana Republic had most stores in North America with about 596 stores with major closures of 21 stores. In all , Gap closed 101 stores and opened 56 – a net closure of 45 stores !

Regions

Stores locations at the beginning of Q4|2017

Stores location opened

Stores location closed

Stores location end of Q4|2017

Gap North America

835

2

27

810

Gap Asia

309

28

24

313

Gap Europe

157

1

3

155

Old Navy North America

1,057

12

3

1,066

Old Navy Asia

13

1

0

14

Banana Republic North America

596

1

21

576

Banana Republic Asia

48

0

3

45

Athleta North America

140

8

0

148

Intermix North America

38

0

0

38

Company operated stores total

3,193

53

81

3,165

Franchise

446

3

20

429

Total

3,639

56

101

3,594

 

Sales Analysis Of Gap Inc For Fourth And Full Year 2017

Anubha Booth No A25 IND

Rock n roll - 19