Gap Inc. sees 3% rise in net sales in Q3
Gap Inc. has released its results for the third quarter ending 29 October 2022, revealing a 2% rise in net sales to £3.39 billion ($4.04 billion), compared to the same period in the previous year.
Third Quarter Financial Results also include:
- Online sales increased 5% compared to last year, representing 39% of total net sales.
- Store sales increased 1% compared to last year.
- Reported gross margin was 37.4%; adjusted gross margin was 38.7%, excluding £44.45 million ($53 million) in impairment charges related to Yeezy Gap.
- Reported net income of £236.50 million ($282 million).
In the Third Quarter, Old Navy’s net sales of £1.76 billion ($2.1 billion) were up 2% compared to last year. Gap’s net sales of £870 million ($1.04 billion) were flat compared to last year.
Banana Republic’s net sales of £433.65 million ($517 million) were up 8% compared to last year, whilst Athleta’s net sales reached £285.17 million ($340 million), up 6% compared to last year.
Bob Martin, Executive Chairman and Interim CEO of Gap Inc., commented: “We have sharpened our focus on execution to optimise profitability and cash flow, are bringing more rigor to our operations, and balancing our assortments in response to what our customers are telling us. While our efforts show early signs of improvement, we are clear that there is work to be done to deliver what our customers, employees, and shareholders expect from Gap Inc.”
Katrina O’Connell, EVP and CFO of Gap Inc., added: “In the near-term, we remain focused on the actions necessary to reduce inventory, rebalance our assortments to better meet changing consumer needs, aggressively manage and reevaluate our investments, and fortify our balance sheet. While we have work to do, we believe we are taking the right steps in order to position Gap Inc. for sustainable, profitable growth and to deliver value for our shareholders over the long term.”
In recent news, the company released a 350-store closure plan. Gap Inc. has already closed 29 Gap and Banana Republic stores in North America year-to-date and expects to close approximately 30 more in Q4.
Gap also recently cut ties with Kayne West, terminating its contract with the artist 8 years early. The company still plans to sell all the Yeezy Gap products that were in the pipeline or released.