Apparel retailer Gap reported a surprise 13 per cent rise in quarterly comparable sales as consumers stuck at home due to the COVID-19 pandemic bought more of its Old Navy and Athleta clothing online.
Its same-store sales rose by 13 per cent, compared with analysts’ forecast of a 20.97 per cent fall, according to IBES data from Refinitiv - Gap Inc. People working or studying from home have been stocking up on comfortable “stay at home” clothes including fleece and activewear, boosting demand for the company’s budget-friendly Old Navy brand, athleisure label Athleta as well as Gap clothing.
The San Francisco-based retailer oubled its e-commerce business for the quarter ended Aug. 1, with about 50 per cent online penetration, and added about 3.5 million new customers.
While the company expects demand for the two brands to fuel sales, it plans to close over 225 unprofitable Gap and Banana Republic stores globally as a part of its restructuring plan.
The back-to-school season, one of the busiest periods for the company, could extend longer and Gap is ready with the “right assortment” for kids whether they are learning at home or in a classroom.
