Gap sees quarterly sales rise on online boost for Old Navy & Athleta
Pandemic fuels demand for comfortable, and affordable apparel
Apparel retailer Gap Inc reported a 13% rise in quarterly comparable sales on Thursday, with shoppers buying Old Navy and Athleta clothing online as its stores remained shut due to the COVID-19 pandemic.
GAP'S OLD NAVY SPINOFF IS TORPEDOED
Shares of the company rose about 4% after the bell.
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The company benefited from demand for comfortable, affordable apparel sold at Athleta and Old Navy as people work and study from home.
Gap said online sales surged 95% and it added 3.5 million new customers through its website and app.
"We nearly doubled our e-commerce business, with approximately 50% online penetration," Chief Executive Officer Sonia Syngal said.
Sales at Athleta rose 6%, while they were down 5% at Old Navy, largely due pandemic-led store closures.
Analysts had forecast a 20.97% fall in comparable sales, according to IBES data from Refinitiv.
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The San Francisco-based retailer reported a net loss of $62 million, or 17 cents per share, for the second quarter ended Aug. 1, compared to a profit of $168 million, or 44 cents per share, a year earlier.
Net sales fell about 18% to $3.28 billion, but were above expectations of $2.91 billion.
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