Gap Inc.’s first quarter report is out for the 2020 financial year and expectedly it doesn’t read well for the American retailer. The impact of the pandemic is hitting every retailer badly.
The fashion label has recorded an operating loss of US $ 1.2 billion in Q1 owing to closure of its stores and subsequent loss of sales over the last few months.
The net sales, including that of its brands Gap, Banana Republic and Old Navy, fell by 43 per cent Y-o-Y during the same period.
However, the digital business for Gap has been exceptional during Q1. Substantiating on the same, Sonia Syngal, President and CEO, Gap, Inc. said “While net sales and store sales continued to reflect material decline in the month of May due to store closures, we saw more than 100 per cent surge in online sales during the month.”
She further said that the Group is well-positioned to move forward at a good pace, as ease of restrictions in North America may help the retailer open its 1,500 stores in North America soon – thereby helping its sales recover.
Reportedly, Gap is also undertaking a strategic review of its store estate especially for Gap and Banana Republic.
Gap operates company-owned and franchise stores in as many as 43 countries, which include US, Canada, the UK, France, Italy and Japan, among others. It generates revenue of US $ 16.6 billion.