Gap Inc. said that its third quarter results reflected flat sales versus last year, supported by 5 percent growth in comparable sales, which was driven by a 61 percent increase in online sales. The company said in a statement that net sales were impacted by the company’s ongoing strategy to close unprofitable stores. Gross margin increased 160 basis points versus last year to 40.6 percent, while the company delivered 25 cents earnings per diluted share.
“Our third quarter results reflect our Power Plan 2023 in action — specifically the strength of our online business, which comprised 40 percent of sales, and our commitment to meeting the shopping preferences of our customers through our leading omni platform,” said Sonia Syngal, Chief Executive Officer, Gap Inc.
Net sales and comparable sales by brand for the third quarter at Old Navy Global increased 15 percent and 17 percent, respectively. Net sales at Gap Global were down 14 percent and comparable sales were down 5 percent reflecting reduced store fleet and lower traffic trends partially offset by strong online performance. Banana Republic Global net sales were down 34 percent, a slight improvement versus the second quarter, while comparable sales were down 30 percent. The company added that net sales at Athleta were up 35 percent and comparable sales were the highest in the brand’s history - up 37 percent - and online contribution remained above 50 percent in the quarter.
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