US clothing retailer Gap achieves record Q2 sales in a decade

28 Aug '21

2 min read

Pic: GAP

Gap Inc, a US-based specialty apparel retailer, has reported a 29 per cent sales growth to $4.2 billion in the second quarter (Q2) of FY21 ended on July 31, 2021, against $3.2 billion in the same period of previous fiscal. Achieving highest record Q2 sales in over a decade, the company has further raised its full-year outlook and expects sales to grow about 30 per cent over 2020.

The outlook reflects the lost revenue related to its decision to change European operating model, as well as the completed divestitures of its Janie & Jack and Intermix businesses, according to the company.

“Our talented teams delivered our highest second quarter net sales in over a decade. Our strategy is driving growth as evidenced by continued strength at Old Navy and Athleta, Gap Brand’s second consecutive quarter of positive 2-year comparable sales in North America, and momentum gaining at Banana Republic,” Sonia Syngal, CEO at Gap Inc, said in a press release. “Stepped-up marketing investments, improved brand management, and technology enhancements are paying off as our brand power cuts through.”

Gross profit for the three-month period increased to $1.8 billion ($1.1 billion), while operating income expanded to $409 million ($73 million). Net income for Q2 advanced to $258 million against a loss of $62 million in the corresponding quarter of 2020 ended on August 1, 2020.

The American retailer recorded growth across all the brands: Old Navy Global grew 27 per cent to $2.4 billion; Gap Global improved 24 per cent to $974 million; Banana Republic Global accelerated 75 per cent to $495 million; and Athleta increased 28 per cent to $341 million.

“I look forward to our Integrated Loyalty Programme and Old Navy's inclusive shopping experience, Bodequality, taking hold in the back half, both key components of our Power Plan 2023, and important drivers of long-term sustainable growth,” Syngal said.

Fibre2Fashion News Desk (JL)

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