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 our results.”

He was, however, quick to add that the company is committed to bringing improvement in their execution plans and performance in 2019.

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 and Gap.

 

 

2319/apparelresources/310519//MKMA7

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