Gap Inc sales slip
Gap Inc has reported a two per cent fall in global sales in the second quarter – but says its turnaround is on track.
“I remain confident in our strategies to improve business performance and drive loyalty going forward,” said CEO Art Peck. “Our evolving product operating model is laying the foundation to more consistently deliver on-trend product collections across our portfolio.”
Gap Inc’s comparable sales by global brand fell six per cent for its primary Gap brand, (compared with a five per cent drop in the same period last year), Banana Republic fell four per cent, (flat last year) and Old Navy grew three per cent (up four per cent last year).
But the company says it delivered earnings per share growth of 12 per cent in the first half year. While Old Navy is clearly gaining momentum, the Gap brand continues to make progress against its strategic actions, including “right-sizing its North America store count to create a smaller, more vibrant fleet of stores”, the company said.
“The brand’s leadership team remains focused on an aggressive agenda designed to improve business performance, including the implementation of a clear, on-brand product aesthetic framework and a new product operating model to increase speed, predictability and responsiveness.”
Gap’s global store count continued to rise outside North America, as the chart below shows.