In the second quarter of 2017, the comparable sales of Gap Inc. were up 1 per cent versus a 2 per cent decrease last year. The rise represents third consecutive quarter of positive comparable sales growth. Net sales for the second quarter of fiscal 2017 were $3.80 billion compared with $3.85 billion for the second quarter of fiscal 2016.
On a reported basis, Gap Inc.’s second quarter fiscal 2017 diluted earnings per share were $0.68. On an adjusted basis, the company’s second quarter fiscal 2017 diluted earnings per share were $0.58, excluding a $0.10 benefit from insurance proceeds related to the fire that occurred on the company’s Fishkill distribution centre campus in fiscal 2016.
Operating expenses for the second quarter were $1.03 billion compared with $1.16 billion last year. Excluding the $64 million gain from insurance proceeds related to the Fishkill fire recorded in the second quarter of fiscal year 2017 and restructuring costs of $135 million recorded in the second quarter of fiscal year 2016. Second quarter fiscal 2017 operating expenses were up about $70 million when compared with last year on an adjusted basis.
The company expects comparable sales for fiscal year 2017 to be flat to up slightly. Net sales for fiscal 2017 are expected to be slightly below the range driven by an expected negative impact from foreign currency fluctuations year-over-year as well as the impact from international closures in fiscal 2016.