26 August 2022, Mumbai
Gap Inc. (NYSE: GPS), a portfolio of purpose-led, billion-dollar lifestyle brands including Old Navy, Gap, Banana Republic, and Athleta, and the largest specialty apparel company in the U.S., today reported financial results for its second quarter ended July 30, 2022.
“This is a pivotal moment in time. While we search for a new leader, I am taking on the role of Interim President & CEO of Gap Inc. with a deep commitment to the company’s success and impatience for change.
Having navigated the global retail industry across brands and markets, I am not approaching this work from the sidelines,” said Bob Martin, Executive Chairman and Interim CEO, Gap Inc. “We are taking actions to better optimize profitability and cash ow in the near term, reducing operating costs as well as impairing unproductive inventory.
Mr. Martin continued, “Gap Inc.’s iconic brands, powerful assets, well-established values, and scaled Omni-platform are central to our strategic direction.
Net sales of $3.86 billion, down 8% compared to last year.
Comparable sales were down 10% year-over-year.
Online sales declined 6% compared to last year and represented 34% of total net sales.
Store sales declined 10% compared to last year.
The fiscal Year 2022 Outlook
“We have four strong brands and leverage in the portfolio to deliver over the long-term, however, our recent 3 execution challenges combined with the uncertain macro trends requires us to manage the levers in our control and take the actions necessary to drive improvement across our entire business,” said Katrina O’Connell, Executive Vice President and Chief Financial Officer, Gap Inc.
“In the near-term, we are taking actions to sequentially reduce inventory, rebalance our assortments to better meet changing consumer needs, aggressively manage and reevaluate investments, and fortifying our balance sheet.
While we have work to do, we believe these are the right initial steps to position Gap Inc. back on its path toward growth, margin expansion, and delivering value for our shareholders over the long term.”.
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