Gap Inc. reported sales results for the four weeks and first quarter ended May 4, 2013. Net sales for the first quarter, which ended May 4, 2013, were $3.73 billion compared with $3.49 billion for the first quarter last year. The company’s first quarter comparable sales were up 2% compared with a 4% increase in the first quarter last year. In addition, net sales for the four weeks period ended May 4, 2013 were $1.21 billion compared with net sales of $1.15 billion for the four weeks period ended April 28, 2012. Due to the fifty three weeks in fiscal year 2012, comparable sales for April 2013 and the first quarter of fiscal year 2013, respectively, are compared to the four-week and thirteen weeks periods ended May 5, 2012. On this basis, the company’s comparable sales for April 2013 were up 7% compared with a 2% decrease for April 2012 and The company expects diluted earnings per share for the first quarter of fiscal year 2013 to be in the range of $0.68 to $0.69. This compares to diluted earnings per share for the first quarter of fiscal year 2012 of $0.47. The fiscal year 2013 first quarter diluted earnings per share includes a benefit of about $0.04 related to the favorable resolution of tax matters in the quarter. Though the company experienced tax favorability in the first quarter, it continues to expect an effective tax rate of about 39% for the fiscal year 2013.

The Gap, Inc. - Pre Recorded Sales/ Trading Statement Call

On April 7, 2011, The Gap, Inc. entered into a $900 million five-year unsecured credit facility consisting of a $500 million revolving credit facility scheduled to expire in April 2016 and a $400 million term loan facility. The term loan was subsequently repaid. on May 1, 2013, the company entered into an amendment of the revolving credit facility portion of the Existing Credit Facility which, among other changes, extended the termination date from April 7, 2016 to May 1, 2018 and reduced the applicable facility fee as well as the applicable margin on potential borrowings. No changes were made to the permitted uses of proceeds or covenants of the facility. The Amended Credit Facility was entered into among The Gap, Inc., Bank of America, N.A. as agent for the Lenders, and the lenders.