Leading apparel retailer Gap Inc. is expecting a bounce back to sales growth in 2021. It is hopeful that customers will soon return to its stores and spend more money on apparels as they look to resume some social activities.
It also announced results of fourth quarter, which ended 30 January. Its net income was US $ 234 million, compared with a loss of US $ 184 million a year earlier, while the net sales fell about 5 per cent to US $ 4.42 billion from US $ 4.67 billion a year earlier.
Gap said its overall online sales were up 49 per cent, representing 46 per cent of net sales during the quarter.
The company is sourcing apparels from many leading Indian apparel exporters.
Gap showed continued strength at its Old Navy and Athleta brands, which focus on basics and workout gear. But, its namesake brand (Gap) and Banana Republic label reported another quarter of sales decline.
Same-store sales for Gap’s athletic apparel brand Athleta grew 26 per cent year over year, and they were up 7 per cent at Old Navy. Gap’s namesake brand, however, booked a 6 per cent same-store sales decline, and Banana Republic said that metric fell 22 per cent.
The company has plans to open 30 to 40 Old Navy stores along with 20 to 30 Athleta stores this year and it will close about 100 Gap and Banana Republic stores globally.
