Gap Inc has increased its outlook for the year. Driven by e-commerce growth, the American fashion retailer expects sales to increase by 20 per cent this year. The retailer saw a massive surge of 89 per cent in first quarter sales to clock $4 billion in revenues. Of this, revenues from online sales accounted for 40 per cent in Q1. As per Sonia Syngal, CEO, Gap Inc, indoor malls accounted for only17 per cent of the company’s overall sales in the first quarter. Hence, the retailer has decided to close Gap and Banana Republic Stores.

The retailer also plans to expand Athleta and Old Navy brands as they accounted for $166 million profits in Q1. Old Navy, the retailer’s biggest brand, earned $7.5 billion in revenue last year globally, while Athleta remains the company’s highest-margin business. Going forward, Gap plans to open at least 30 Old Navy locations and 20 Athleta stores this year.