Gap Inc.: sales decline continues in the 3rd quarter
After a disappointing first and second quarter, the Gap group recorded another decline in sales, which fell by 2% in the quarter closed at the end of October. Only the Old Navy brand, as has been the case for some seasons now, pushed the group's results upwards.
The Gap retail brand thus recorded a 4% decline in retail sales, after posting a 5% downturn a year earlier. Banana Republic's decline was sharper at -12%, after the relative stability achieved last year. For its part, Old Navy posted a 4% rise, capitalising on the 1% increase recorded last year.
Only the month of October turned out to be similar to October 2014, with a 3% fall in sales. Gap fell by 4%, compared to 7% the previous year. The situation was more complicated for Banana Republic, whose sales plunged by 15%, compared to -2% last year. Old Navy instead managed to boost sales by 2%, after a steady result last year.
"Now that the autumn is behind us, the teams in charge of our portfolio are concentrating on the vigorous implementation of our plans for the festive season", was the only comment by Sabrina Simmons, CFO for the Californian group.
In the fiscal year closed at the end of January, Gap Inc. generated sales for €14.5 billion. This was equivalent to a 5% rise, mostly ascribable to Old Navy. The Gap retail brand announced in June its intention to close down a quarter of its stores in North America over the course of the next few years (140 will close down this year), and to dismiss about 250 staff at the group's headquarters.
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