Tuesday, May 30, 2023

Gap lost 16.8 million dollars in its first quarter, 88.9% less than last year

The American textile chain Gap closed its first fiscal quarter, ended April 29, with a net loss of 18 million dollars (16.8 million dollars), which means a reduction of 89% compared to the loss of the equivalent quarter. 162 million dollars (151 million cash), as announced by the multinational this Friday.

Solid textile accounts reflect a 5.8% drop in sales in the quarter, to 3.276 million (0.054 million in cash). Of the brands, Old Class provided the group with 1,828 million dollars (1,704 million cash), 0.7% less. It made the same gap with 692 million dollars (645.2 million cash), 12.5% ​​less, while Banana Republic generated 10.4% less revenue, billing 432 million (402.8 million cash). Finally, Athleta 321 million coins (299.3 million coins), 10.8% less.

As for the origin of profit, the group’s own physical stores and franchises reported 2,053 million (1,914 million reported) and online sales for 1,223 million dollars (1,140 million calculated). Generated by lying they gave 196 million (182.7 million in cash). At the end of the quarter, the multinational had 3,453 stores around the world.

86.7% of revenue from the United States of America, 7.7% from Canada, 2.8% from Asia, another 0.9% from Europe. The remaining 1.8% corresponds to different markets.

The company, which is still undergoing a transition to find a new CEO, continues to increase margins and reduce inventories, although “the macroeconomic and consumer environment remains uncertain.” In this sense, the chain has warned to reduce its final inventory by 27.5% year on year, which is an excess of 2,299 million dollars (2,143 million reported).

In the second quarter, the gap estimates that sales will decrease between 5% and 9% to a turnover of 3,860 million dollars (3,599 million cash) in the same period above.

Nation World News Desk
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