Apparel retailer Gap Inc plans to sell its China business. Bloomberg reports suggest, the parent company of Old Navy has appointed an advisor to hive off China business and is exploring various options. Betting on rising incomes to boost sales, Gap forayed into the Chinese market about a decade ago. However, last year, the retailer shifted focus to North America and stopped selling Old Navy apparel in China.
Its latest regulatory filing says, Gap‘s Asian market accounts for about 5 per cent of its overall net sales. The company was founded in 1969 to provide consumers with a well-fitted pair of jeans. Since then, it has grown into seven brands, with a global ambition to champion equality, inclusivity and sustainability.
The company expects net sales in fiscal year 2021 to reflect mid- to high-teens growth. It expects to deliver operating margin of approximately 5 per cent in 2021. The outlook for 2021 is consistent with the company’s Power Plan 2023 objective of achieving at least a 10 per cent operating margin by the end of 2023.
