U.S. clothing retailer Gap achieves record second quarter revenue in a decade
Gap Inc, a U.S. specialty apparel retailer, reported 29% sales growth to $ 4.2 billion in the second quarter (Q2) of fiscal 21 ended July 31, 2021, from $ 3.2 billion. dollars in the same period of the previous fiscal year. With record second quarter sales for more than a decade, the company has further raised its outlook for the full year and expects sales growth of around 30% from 2020.
The outlook reflects the loss of revenue from its decision to change its European operating model, as well as the completed divestitures of its Janie & Jack and Intermix businesses, according to the company.
“Our talented teams achieved our highest second quarter net sales in over a decade. Our strategy is driving growth, as evidenced by the continued strength of Old Navy and Athleta, the second consecutive quarter of positive 2-year comparable sales from Gap Brand in North America, and the acceleration of Banana Republic ”, Sonia Syngal, CEO of Gap Inc, said in a statement. “Increased marketing investments, improved brand management and technological improvements are paying off as our brand power passes through. ”
Gross profit for the three-month period increased to $ 1.8 billion ($ 1.1 billion), while operating profit reached $ 409 million ($ 73 million). Second quarter net income increased to $ 258 million from a loss of $ 62 million in the corresponding quarter of 2020 ended August 1, 2020.
The US retailer saw growth across all brands: Old Navy Global grew 27% to $ 2.4 billion; Gap Global improved 24% to $ 974 million; Banana Republic Global accelerated 75% to $ 495 million; and Athleta rose 28% to $ 341 million.
“I look forward to our integrated loyalty program and Old Navy’s inclusive shopping experience, Bodequality, to take hold in the second half, two key elements of our 2023 power plan and important drivers of our business. ‘long-term sustainable growth,’ said Syngal.
Fibre2Fashion Information Office (JL)
Gap, a specialty clothing retailer, reported 29% sales growth to $ 4.2 billion in the second quarter (Q2) of fiscal 21 ended July 31, 2021, from $ 3.2 billion in the during the same period of the previous fiscal year. Achieving the highest second-quarter sales record in more than a decade, the company has further raised its outlook for the full year and expects sales growth of 30% from 2020.