Gap reports FY19 net sales of $16 bn

13 Mar '20

3 min read

Pic: GAP

Gap, a leading global retailer offering clothing and personal care products, reported 1 per cent increase in net sales to $4.7 billion compared to same period prior year. However, net sales fell slightly by 1 per cent to $16.4 billion in full fiscal 2019 that ended on February 1, 2020. Gross profit declined 3 per cent to $6.13 billion over the year.

“While fiscal 2019 was a challenging year, I am proud of our teams and their commitment to Gap Inc. Thanks to their efforts, we began to see stabilisation in our business in the fourth quarter, driven primarily by improvement in Old Navy's performance,” interim chief executive officer, Bob Fisher, said in a press release.

Fourth quarter FY19 gross profit increased 2 per cent to $1.67 billion compared to same period prior year. Gross margin in Q4 FY19 was 35.8 per cent compared to same period prior year. Gross margin for full FY19 was 37.4 per cent. Operating margin reported a loss of 5.2 per cent compared to an increase of 8.0 per cent in the quarter.

Old Navy Global's sales in Q4 FY19 were flat versus last year at $ 2,265 million while decreased 2 per cent in full FY19 to $ 7,983 million compared to prior fiscal. Gap Global's sales fell 5 per cent to $1,338 million in Q4 and 7 per cent to $ 4,634 million in the year. Sales in the quarter remained flat for Banana Republic Global to $737 million and decreased 2 per cent to $2,539 million over the year. Other sales were flat in Q4 at $334 million while it increased in full FY19 to $1,227 million.

Sales in America remained flat at $13,398 million in 2019 and holds 82 per cent of overall sales for the company. Sales in Europe decreased to $539 million compared to $603 million in FY18. Asia also registered decrease in sales to $1,084 million compared to $1,233 million prior year.

“Due to the evolving coronavirus situation, we are facing a period of uncertainty regarding the potential impact on both our supply chain and customer demand,” incoming Gap Inc CEO Sonia Syngal, said in the release. “We will benefit from our strong balance sheet and cash generation as well as our important vendor relationships during this current challenging period.”

The company expects both comparable sales and net sales for fiscal year 2020 to be down low-single digits, as it continues the Gap specialty fleet restructuring efforts.

Fibre2Fashion News Desk (JL)

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