At the rate fast fashion brands are taking over both online and in the world of physical retail, it can be easy to forget that the mall-based merchants that predated the Zaras and H&Ms of the world can still put up some solid numbers. In June, that’s exactly what Gap did.
Gap announced its earnings Thursday (July 7) for the five-week period ending July 4, and thanks to a resurgence in its Old Navy brand, the numbers look promising. Net sales increased by 2 percent overall for a new total of $1.54 billion, which juxtaposes nicely with the 1-percent decline Gap was staring at this time last year. Even Sabrina Simmons, CFO at Gap Inc., had to acknowledge that the company’s June performance was in no small part due to Old Navy’s brand-specific 5-percent jump in global sales.
“We are pleased to see better performance across the portfolio this month, partly driven by an improvement in June traffic trends, particularly at Old Navy,” Simmons said in a statement.
Not all of Gap’s portfolio boasted Old Navy-like numbers, though. Its main brand suffered a 1-percent decline in sales in June, though even that is an improvement compared to 2015’s 5-percent slide. Banana Republic’s global sales slipped by 4 percent last month, which represented the only net negative slide for any of Gap’s brands compared to its 1-percent spike this time last year.