States would not be able to start requiring the collection and remittance of sales taxes from online vendors located out of state until next year under the Protecting Small Business from Burdensome Compliance Costs Act of 2018 that Republican Rep. Bob Gibbs of Ohio introduced last week. Roughly three months after the U.S. Supreme Court issued its decision to allow states to require out-of-state merchants to collect and remit local sales tax on goods sold to their residents, Rep. Bob Gibbs (R-Ohio) has introduced legislation that would impose limits on states’ online sales tax bills. Click Read More below for additional information.
Gap Inc. (NYSE: GPS) today reported that net sales for the fourweek period ended August 1, 2015 were $1.12 billion compared with net sales of $1.17 billion for the four‐week period ended August 2, 2014. For the second quarter of fiscal year 2015, Gap Inc.’s net sales decreased 2 percent to $3.90 billion compared with $3.98 billion for the second quarter last year.
On a constant currency basis, net sales for the second quarter of fiscal year 2015 were about flat versus last year.1 The company noted that the translation of foreign currencies into U.S. dollars negatively impacted the company’s reported net sales for the second quarter of fiscal year 2015 by about $100 million, primarily due to the weakening Japanese yen and Canadian dollar.
“We’re pleased that Old Navy delivered another consecutive quarter of growth, while we continued to make progress against previously announced strategic actions at Gap brand,” said Sabrina Simmons, chief financial officer, Gap Inc.
July Comparable Sales Results
Gap Inc. comparable sales for July 2015 were down 3 percent versus a 2 percent increase last year.
Comparable sales by global brand for July 2015 were as follows:
* Gap Global: negative 7 percent versus negative 2 percent last year
* Banana Republic Global: negative 10 percent versus positive 6 percent last year
* Old Navy Global: positive 3 percent versus positive 3 percent last year
The company noted that tax‐free holidays in several states shifted from July last year to August this year. In addition, the company noted that this year’s Labor Day holiday is one week later, as compared to last year.
Second Quarter Comparable Sales Results
Gap Inc. comparable sales for the second quarter of fiscal year 2015 were down 2 percent versus flat last year. Comparable sales by global brand for the second quarter of fiscal year 2015 were as follows:
* Gap Global: negative 6 percent versus negative 5 percent last year
* Banana Republic Global: negative 4 percent versus flat last year
* Old Navy Global: positive 3 percent versus positive 4 percent last year