Gap Inc.’s Q3 financial results have been declared!
The comparable-store sales for the American fast fashion group rose by 5 per cent, which was better than the 2.4 per cent fall predicted by analysts.
The retailer said that the increase was due to a 61 per cent surge in e-commerce sales.
Talking about brands, Old Navy has been instrumental in driving the growth of the fashion retailer during the third quarter with the sales growth of 15 per cent, while the Gap brand has been a disappointment with a sales fall of 14 per cent.
Meanwhile, the retail group has made it distinct that it will be closing down all the underperforming Gap and Banana Republic stores.
It is important to mention here that Banana Republic too saw its sales go down by as much as 34 per cent.
Gap Inc. has said that it will also be working on its business strategies. While Banana Republic will start focusing more casual apparels, the retailer’s namesake brand will focus more on e-commerce.
Athleta line, expectedly, has done well in 2020 with sales rising by 35 per cent.
Gap hopes the fourth quarter to be better than the third quarter, but with so much uncertainty still hovering around the COVID scenario across the globe, it is not sure how Q4 will turn out for Gap or for any other fashion retailer.