Gap Inc. Reports March Sales

SAN FRANCISCO – – Gap Inc. (NYSE: GPS) today reported that March 2011 net sales decreased 8 percent compared with last year.

Net sales for the five-week period ended April 2, 2011 were $1.33 billion compared with net sales of $1.45 billion for the five-week period ended April 3, 2010. The Company’s comparable sales for March 2011, which include the associated comparable online sales, were down 10 percent compared with an 11 percent increase for March 2010.

“Our overall March performance was impacted by the tragic events in Japan, as well as the Easter shift into late April,” said Glenn Murphy, chairman and chief executive officer of Gap Inc. “Our Company has operated in Japan for more than 15 years, with over 150 stores today, so the devastating earthquake touched all of us at Gap Inc.”

“Looking ahead, we remain intensely focused on April and delivering on our full year strategies,” Murphy added.

The Company anticipates that the tragic events in Japan will negatively impact its first quarter diluted earnings per share by about $0.04. First quarter diluted earnings per share is expected to be below the current mean first call consensus estimate of $0.44.

Comparable sales for March 2011, including the associated comparable online sales, were as follows:

* Gap North America: negative 9 percent versus positive 12 percent last year
* Banana Republic North America: negative 8 percent versus positive 10 percent last year
* Old Navy North America: negative 12 percent versus positive 13 percent last year
* International: negative 9 percent versus positive 5 percent last year


April Sales

The Company will report April sales on May 5, 2011.


About Gap Inc.

Gap Inc. is a leading global specialty retailer offering clothing, accessories, and personal care products for men, women, children, and babies under the Gap, Banana Republic, Old Navy, Piperlime, and Athleta brands. Fiscal 2010 net sales were $14.7 billion. Gap Inc. products are available for purchase in over 90 countries worldwide through about 3,100 company-operated stores, about 175 franchise stores, and e-commerce sites. For more information, please visit www.gapinc.com.