The Gap 2014 Annual Report Download - page 31

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Fiscal 2014 and 2013 consisted of 52 weeks versus 53 weeks in fiscal 2012. Net sales and operating results for
fiscal 2012 reflect the impact of the additional week. In addition, due to the 53rd week in fiscal 2012, comparable
("Comp") sales for fiscal 2013 are compared to the 52-week period ended February 2, 2013.
Our business priorities in 2015 include:
• offering product that is consistent, brand-appropriate, and on-trend;
• evolving our customer experience to reflect the intersection of digital and physical;
• attracting, retaining, and training great talent; and
• growing globally across our brands and channels.
For fiscal 2015, we expect to continue our investment in digital capabilities and to further enhance our shopping
experience for our customers. We also plan to continue our global growth, including opening additional stores in
Asia with a focus on Gap China, Old Navy China, and Old Navy Japan. In addition, we also expect to open
additional Athleta stores in the United States.
In fiscal 2015, we expect that foreign exchange rate fluctuations will continue to have a meaningful negative
impact on our results, particularly in our largest foreign subsidiaries in Canada and Japan. With the continuing
depreciation of the Canadian dollar, Japanese yen, and other foreign currencies, we expect net sales translated
into U.S. dollars will decrease and negatively impact our total Company net sales growth. In addition, we expect
gross margins for our foreign subsidiaries to be negatively impacted as our merchandise purchases are primarily
in U.S. dollars. In addition to the impact of the foreign exchange rate fluctuations, we also expect that delayed
merchandise receipts at the U.S. West Coast ports will have meaningful negative impact on our fiscal 2015
operating results.
Results of Operations
Net Sales
See Item 8, Financial Statements and Supplementary Data, Note 17 of Notes to Consolidated Financial
Statements for net sales by brand and region.
Comparable Sales
The percentage change in Comp sales by global brand and for total Company, as compared with the preceding
year, is as follows:
Fiscal Year
2014 2013
Gap Global (5)% 3 %
Old Navy Global 5% 2%
Banana Republic Global — % (1)%
The Gap, Inc. —% 2%
The Comp sales calculations include sales from stores and online. Comparable online sales favorably impacted
total Company Comp sales by 2 percent and 3 percent in fiscal 2014 and 2013, respectively.
Only Company-operated stores are included in the calculations of Comp sales. The calculation of total Company
Comp sales includes the results of Athleta, Intermix, and the Piperlime store, but excludes the results of our
franchise business and Piperlime online.
A store is included in the Comp sales calculations when it has been open and operated by Gap Inc. for at least
one year and the selling square footage has not changed by 15 percent or more within the past year. A store is
included in the Comp sales calculations 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 the Comp sales calculations until the first day they have comparable prior year sales.