Join        Login             Stock Quote

Gap (GPS) Dec Comps Up 5 Pct, Approves $1B Share Buyback; Buys Intermix

 January 03, 2013 08:39 AM

(By Balaseshan) Gap Inc. (NYSE: GPS) said its comparable store sales for the month of December increased 5% on top of last year's 4% decline. In addition, the retailer approved new $1 billion share repurchase authorization, and acquired Intermix Inc.

Following the news, shares of GPS rose 4.40% in premarket.

Comparable store sales from Gap North America rose 2%, while store sales from Banana Republic North America up 1%. Store sales from Old Navy North America grew 13%, while sales from International fell 6%.

Net sales for the five-week period ended December 29, 2012 were $2.08 billion, up from $1.98 billion for the five-week period ended December 31, 2011.

[Related -The Gap Inc. (NYSE:GPS), L Brands Inc(NYSE:LTD): How November Comps Will Fare Post Black Friday?]

The company's year-to-date comparable sales increased 4%. Year-to-date net sales for the 48 weeks ended December 29, 2012 increased 6% to $14.52 billion from $13.72 billion.

In a separate release, Gap said it has purchased Intermix Holdco Inc., a multi-brand specialty retailer of luxury and contemporary women's apparel and accessories, based in New York for about $130 million in cash. The transaction was completed on December 31.

Intermix will continue to operate under the leadership of Keledjian, in the role of chief creative officer, and Adrienne Lazarus, president, both of whom will continue to be based in New York. They will report to Art Peck, president of Gap's Growth, Innovation & Digital (GID) division.

[Related -Store Intel: Gap Store (GPS), American Eagle (AEO), Abercrombie (ANF)]

Intermix operates 32 boutiques across North America, along with an e-commerce site, offering a mix of luxury brands including up-and-coming designers for customers seeking elevated fashion. Gap sees an opportunity to expand Intermix's network of stores, as well as add significant visibility and enhancements to its online site.

This acquisition extends Gap's portfolio of brands, building upon the success of the company's acquisition of Athleta in 2008 and the multi-brand, premium product offering at Piperlime.

Additionally, Gap said its board of directors approved a new $1 billion share repurchase authorization for the company's common stock, reinforcing its commitment to returning excess cash to shareholders.

The new $1 billion repurchase program for Gap's stock follows the company's previous $1 billion share repurchase program, which was completed during the fourth quarter of fiscal 2012. The company repurchased about 17 million shares for about $539 million during the fourth quarter of fiscal 2012 to date.

GPS closed Wednesday's regular session up 1.06% at $31.37. The stock has been trading between $17.75 and $37.85 for the past 52 weeks.



Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageAutomating Ourselves To Unemployment

In this current era of central planning, malincentives abound. We raced to frack as fast we could for the read on...

article imageFed: Waiting For June… Or Godot?

The Federal Reserve left interest rates unchanged yesterday, as widely expected. But the possibility of a read on...

article imageThe Single Best Place To Invest Your Money For Retirement

It was never supposed to be this daunting. At least that's what we were read on...

article imageNegative Blowback From Negative Interest Rates

The Federal Reserve is widely expected to leave interest rates unchanged today. But perhaps standing pat read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.