Gap Inc, a portfolio of purpose-led, billion-dollar lifestyle brands including Old Navy, Gap, Banana Republic, and Athleta, and the largest specialty apparel company in the US reported fiscal 2022 financial results for its first quarter ended April 30, 2022.

As per the company’s figures, its net sales declined by 13 per cent to $3.5 billion, from last year. Sales growth was negatively impacted by an estimated 5 percentage points related to lapping the benefit of stimulus last year and approximately 3 percentage points from divestitures, store closures, and the transition of the company’s European business to a partnership model.

Comparable sales declined by 14 per cent Y-o-Y. Online sales declined by 17 per cent compared to last year and represented 39 per cent of total net sales. Store sales declined 10 per cent compared to last year. The company ended the quarter with 3,414 store locations in over 40 countries, of which 2,825 were company operated. The company’s gross margins declined by 930 basis points from last year to 31.3 per cent.