Online sales increased 82% in the first quarter, with Gap Inc. performing strongly

Gap Inc. of the United States has a net profit of US$166 million

The San Francisco-based operator of Gap, Old Navy, Banana Republic and Athleta reported net income of $166 million in the quarter ended May 1, compared with a loss of $932 million a year earlier. Operating profit rose to $240 million, compared with a loss of $1.24 billion a year earlier.

Net sales for the last quarter increased 89% to $3.99 billion from $2.11 billion a year ago , and were up 8% quarter-over-quarter from 2019. Of that, comparable sales increased 28% year-over -year and 13% from 2019.

Online sales increased 82% compared to the first quarter of 2019 and accounted for 40% of total business. Store sales decreased 16% compared to the first quarter of 2019, mainly due to strategic and COVID-19 lockdown closures outside the United States.

Gap Inc. CEO Sonia Syngal said Thursday that its 2023 power plan is on track. Investments in demand generation, coupled with macro tailwinds , have fueled momentum for its brands. Gap Inc. sales grew 8% from pre- COVID-19 levels in 2019, especially Old Navy and Athleta, which are North America’s top brands.

The healthy and growing Gap business has outpaced the industry in market share growth.

Online sales up 82% in first quarter

By segment, Old Navy Global net sales increased 27% compared to 2019; comparable sales increased 35% year-over-year and 25% compared to 2019. These gains were attributed to "compelling product storytelling, value-driven messaging, customer acquisition and strong transaction metrics."

Executives said key categories such as actives and fleece remain strong, recent expansion into underwear and a wider size range also boosted sales, and seasonal categories are now trending well as consumers enter a new phase of pandemic recovery, planning vacations and summer events.

At Gap Global, net sales were down 16% compared to 2019, with permanent store closures resulting in an estimated 11% decline in sales, while international COVID-19 closures resulted in an estimated 4% decline over two years . Comparable sales increased 29% year-over-year and were down 1% compared to 2019.

Banana Republic Global’s net sales were down 29% compared to 2019. Comparable sales were down 4% year-over-year and down 22% compared to 2019. “Banana Republic’s new team is making progress, laying the foundation for its transformation,” Syngal said, citing progress in realigning pricing architecture, improving the store experience and refreshing brand creative.

USA

Gap Inc.

First Quarter