Gap sees quarterly sales rise on online boost for Old Navy & Athleta
Coronavirus leads consumers to spend on tangible items, not experiences: Retail analyst
The NPD Group chief retail analyst Marshal Cohen on how retailers are being impacted by the coronavirus, specifically missing out on the back-to-school shopping season, which used to be the second-biggest retail period of the year for many brands.
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.
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GAP'S OLD NAVY SPINOFF IS TORPEDOED
Shares of the company rose about 4% after the bell.
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.
WHO STARTED GAP?
"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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