Gap will start closing a part of its 775 brand specialty stores globally, due to underperformance. Details on the locations and sequencing of the upcoming closures are yet to come, but the specifics should come as part of the forecast for FY2019., Gap plans to continue growing its e-commerce business, which makes up roughly 20 percent of revenue, and the more than 500 Gap outlet stores that account for about 30 percent of total Gap Global revenue.

The other 50 per cent of revenue for Gap stores all comes from the ailing specialty store segment of Gap Global and there is a wide variance in profitability among the group. The company’s sales declined 7 per cent in Q3 and earnings per share guidance for FY2018 narrowed to $2.55 to $2.60 from the previous guidance of $2.55 to $2.70. Meanwhile, sales were up 4 percent at Old Navy and up 2 percent at Banana Republic.