American clothing retailer Gap's Q1 FY21 sales jump 89% to $3.9 bn

Gap Inc, a US-based specialty apparel company, has reported 89 per cent sales growth to $3.9 billion in its first quarter (Q1) FY21 ended on May 1, 2021, compared to the sales of $2.1 billion in the corresponding quarter of previous fiscal. The company’s net income during the quarter rose to $166 million (Q1 FY20: net loss $932 million).

 

“As stores traffic came back, we sustained our digital dominance with 82 per cent online growth versus 2019. And while Active and Fleece continue to soar, we saw a resurgence in summer fashion with dresses rebounding, showing that customers are emerging from the crisis wanting to express their style without sacrificing the comfort and digital convenience they’ve become accustomed to. Through the power of our brands, platform and portfolio, we deliver it all,” Sonia Syngal, chief executive officer at Gap Inc, said in a press release.

 

Gross profit for Q1 FY21 increased to $1.6 billion ($268 million), while operating expenses were $1.3 billion ($1.5 billion). Gap’s operating income for the three-month period improved to $240 million (loss: $1.2 billion).

 

Sales of Old Navy Global brand jumped to $2.3 billion ($1.0 billion), whereas Gap Global sales surged to $886 million ($524 million). Banana Republic Global sales were $389 million ($289 million), and Athleta brand sales were $347 million ($205 million).

 

Regionally, sales in all the markets improved for Q1 FY21: US $3.4 billion ($1.7 billion), Canada $261 million ($135 million), Europe $72 million ($57 million), Asia $180 million ($121 million), and other regions $54 million ($33 million).