Gap sales drop in Q1
The American clothing retailer, Gap Inc., saw a drop in its
first quarter sales across the whole firm. What is noteworthy is
that the Gap brand, in particular, was the biggest loser with
the total sales going down by 10 per cent.
While last year, Gap‘s Q1 group sales had increased by paltry 1
per cent, this year’s first quarter up to 4 May saw the sales
falling by 4 per cent.
Going brand wise, the global comp sales for Gap was affected the
most as it fell by 10 per cent in Q1, whereas it was down by 3
per cent and 1 per cent for Banana Republic and Old Navy – its
other esteemed brands.
Art Peck, President and Chief Executive Officer, Gap, while
expressing disappointment said “The first quarter has been very
challenging for the company and we are not at all satisfied with
He was, however, quick to add that the company is committed to
bringing improvement in their execution plans and performance in
The disappointing performance comes as Gap is all set to divide
its business into 2 entities, one that owns value-focused Old
Navy brand and the other owning premium brands Banana Republic