US' Gap reports net sales of $16.7 billion in 2021

Comparable sales for fiscal year 2021, ended January 29, 2022, grew 8 per cent versus 2019 and were up 6 per cent year-over-year. The comparable sales calculation reflects online sales and comparable sales days in stores that were open, the company said in a media release, the company said in a press release.

The company’s fourth quarter (Q4) FY21 net sales were $4.5 billion, down 3 per cent compared to 2019. Strategic permanent store closures and divestitures reduced net sales by approximately 9 percentage points versus 2019. Online sales grew 44 per cent compared to the fourth quarter of 2019 and represented 43 per cent of the total business. Fourth quarter comparable sales were up 3 per cent versus 2019 and 3 per cent year-over-year.

Fourth quarter net sales of the Old Navy brand were muted in part due to supply chain impacts, up 2 per cent versus 2019 with comparable sales flat versus 2019. For the year, the brand crossed $9 billion in net sales, up 14 per cent compared to fiscal year 2019 with comparable sales up 12 per cent versus 2019.

Fourth quarter net sales of the Gap brand declined 13 per cent versus 2019, with permanent store closures contributing an estimated 17 percentage points of decline. Global comparable sales increased 3 per cent with North America comparable sales up 12 per cent versus the fourth quarter of 2019. Fiscal year 2021 net sales were down 12 per cent compared to fiscal year 2019, with permanent store closures reducing sales by an estimated 15 percentage points. Global comparable sales for fiscal year 2021 were up 2 per cent with North America comparable sales up 12 per cent versus 2019, according to Gap.

The Banana Republic brand’s fourth quarter net sales declined 11 per cent versus 2019, with permanent store closures contributing an estimated 10 percentage points of the decline. Comparable sales were down 2 per cent versus the fourth quarter of 2019. Fiscal year 2021 net sales were down 18 per cent compared to fiscal year 2019, with permanent store closures reducing sales by an estimated 10 percentage points. Comparable sales for fiscal year 2021 were down 9 per cent versus 2019.

As for the Athleta brand, its fourth quarter net sales were up 52 per cent versus 2019 with comparable sales up 42 per cent versus the fourth quarter of 2019. Fiscal year 2021 net sales were up 48 per cent compared to fiscal year 2019 with comparable sales up 39 per cent versus 2019. Athleta is on track to hit $2 billion in net sales by fiscal year 2023.

The company’s fiscal 2022 reported diluted earnings per share is expected to be in the range of $1.95 to $2.15 with adjusted diluted earnings per share in the range of $1.85 to $2.05.

Fibre2Fashion News Desk (GK)