Gap tackling falling sales
First quarter decline for clothing retailer
Gap is to step up its growth strategy after reporting a fall in sales across the first quarter.
In the three months to the end of April, sales decreased 1 per cent to $3.6bn, with total comparable store sales down 4 per cent. compared with a prior year increase. Net income fell 7 per cent to $291m.
Across the quarter, Gap’s North American businesses, including the Gap, Old Navy and Banana Republic chains, all saw comparable store sales decline by 4 per cent. The decline was steeper in Gap International, where same store sales fell by 6 per cent.
Gap president and CEO Paul Pressler said: “Overall, our first quarter results were disappointing as we were up against record high earnings from last year. Our teams understand our challenges and they are taking the necessary steps to improve. We remain focused on operational discipline and executing our growth strategies.”
Gap has announced a new US retail brand, Forth and Towne, targeting a more mature, female customer. Former New Look boss Stephen Sunnucks, appointed last month as Gap’s European president, is said to be considerng bringing the Old Navy and Banana Republic brands to Europe.
