The Gap 2010 Annual Report Download - page 28

Results of Operations
Net Sales
Net sales primarily consist of retail sales, online sales, wholesale and franchise revenues, and shipping fees received
from customers for delivery of merchandise.
See Item 8, Financial Statements and Supplementary Data, Note 14 of Notes to Consolidated Financial Statements
for net sales by brand, region, and reportable segment.
Comparable Store Sales
The percentage change in comparable store (“Comp”) sales by brand and region and for total Company, as
compared with the preceding year, is as follows:
Fiscal Year
2010 2009
Gap North America ............................................................................ (1)% (7)%
Old Navy North America ....................................................................... 2% 3%
Banana Republic North America ................................................................ 3% (9)%
International ................................................................................. 1% (4)%
TheGap,Inc................................................................................... 1% (3)%
Only the Company-operated stores are included in the calculation of Comp sales. The Comp sales calculation
excludes sales from our online and catalog businesses and wholesale and franchise businesses. Gap and
Banana Republic outlet Comp sales are reflected within the respective results of each brand.
A store is included in Comp when it has been open for at least 12 months and the selling square footage has not
changed by 15 percent or more within the past year. A store is included in Comp on the first day it has comparable
prior year sales. Stores in which the selling square footage has changed by 15 percent or more as a result of a
remodel, expansion, or reduction are excluded from Comp until the first day they have comparable prior year sales.
Current year foreign exchange rates are applied to both current year and prior year Comp sales to achieve a
consistent basis for comparison.
A store is considered non-comparable (“Non-comp”) when it has been open for less than 12 months or has changed
its selling square footage by 15 percent or more within the past year.
A store is considered “Closed” if it is temporarily closed for three or more full consecutive days or is permanently
closed. When a temporarily closed store reopens, the store will be placed in the Comp/Non-comp status it was in
prior to its closure. If a store was in Closed status for three or more days in the prior year, the store will be in
Non-comp status for the same days the following year.
Beginning in fiscal 2011, the Company reports comparable sales including the associated comparable online sales.
Online comparable sales are defined as sales through online channels in regions where we have existing
comparable store sales. The Company’s comparable sales including the associated comparable online sales
increased 2 percent for fiscal 2010.
Store Count and Square Footage Information
Net sales per average square foot is as follows:
Fiscal Year
2010 2009 2008
Net sales per average square foot (1) ................................................... $342 $329 $336
(1) Excludes net sales associated with our online, catalog, wholesale, and franchise businesses.
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