The Gap 2009 Annual Report Download - page 35

Results of Operations
Net Sales
Net Sales by Brand, Region, and Reportable Segment
Net sales primarily consist of retail sales, online sales, wholesale and franchise revenues, and shipping fees received
from customers for delivery of merchandise. Gap and Banana Republic outlet retail sales are reflected within the
respective results of each brand.
We identify our operating segments based on the way we manage and evaluate our business activities. We have
two reportable segments: Stores and Direct.
See Item 8, Financial Statements and Supplementary Data, Note 16 of Notes to Consolidated Financial Statements
for net sales by brand, region, and reportable segment.
Comparable Store Sales
The percentage change in comparable store sales by brand and region and for total Company, as compared with
the preceding year, is as follows:
Fiscal Year
2009 2008
Gap North America ........................................................................... (7)% (8)%
Old Navy North America ....................................................................... 3% (17)%
Banana Republic North America ................................................................ (9)% (10)%
International ................................................................................. (4)% (4)%
TheGap,Inc. ................................................................................. (3)% (12)%
Only the Company owned stores are included in the calculation of comparable store sales. The comparable store
sales calculation excludes sales from our Direct reportable segment and our wholesale and franchise businesses.
Gap and Banana Republic outlet comparable store sales are reflected within the respective results of each brand.
A store is included in comparable store sales (“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 store 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.
Store Count and Square Footage Information
Net sales per average square foot is as follows:
Fiscal Year
2009 2008 2007
Net sales per average square foot (1) ................................................... $329 $336 $376
(1) Excludes net sales associated with the Direct segment and our wholesale and franchise businesses. Computation also excludes net sales
and average square footage associated with the discontinued operation of Forth & Towne for fiscal 2007.
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