Gap CFO says on track for strong Q4
November 11, 1999 08:56 AM
NEW YORK, Nov 11 (Reuters) - Apparel retailer Gap Inc. is "on track" for a strong fourth quarter and the company is set for a record year next year, Executive Vice President and Chief Financial Officer Heidi Kunz said on Thursday.
"We are on track to deliver a strong fourth quarter," Kunz said in a conference call.
In a conference call after the higher third-quarter earnings that beat Wall Street's expectations and record sales, Kunz said last year's 17 percent increase in comparable-store sales in the fourth quarter provides a tough comparison.
Kunz noted that many analysts have assumptions about mid-single digit increases in comparable store sales, which reflects the tough comparisons that the company faces in the quarter ended January. Also, she noted that improvements could be made in its sourcing, administrative and occupancy costs.
Inventory increased to $1.8 billion at the end of the third quarter compared with $1.4 billion last year.
The increase came from a greater number of stores and increased inventory in Old Navy, but Kunz said the company's inventories are "clean" meaning that there is not a great deal of merchandise that needs to be marked down to clear shelves for holiday apparel.
Next year the retailer plans on opening between 550 and 600 stores with 270 to 290 coming from its Gap brand, 40 to 60 Banana Republic Stores, and 110 to 120 Old Navy and 120 to 130 international stores, Kunz said.
Kunz said the store openings give it the foundation for another record year, despite an increase in capital spending.
Gap, which is planning to open 450 stores this year, had 2,809 stores as of October 30. |
