With pandemic-related store closures driving a 43 percent year-over-year decline in sales, Gap Inc. reported a 13 percent year-over-year rise in Q1 eCommerce sales and 100 percent year-over-year sales growth in May. The retailer said in an announcement that 55 percent of its North American company-operated fleet is open as now, with roughly 90 percent of its fleet providing “convenient omni-channel order fulfillment options.”
Gap Inc. President and CEO Sonia Syngal said in the announcement, “Our teams' ability to pivot quickly and lean into our strong online business resulted in an encouraging 40% online sales growth in April. While net sales and stores sales continued to reflect material declines in May as a result of closures, we saw over 100% growth in online sales during the month.”
Gap Inc. said the temporary closures of roughly 90 percent of its worldwide fleet beginning on March 19 impacted its Q1 results. But the retailer said it put into place multiple steps to bolster its cash position in addition to securing further financing in early Q2.
It also “leveraged its omni capabilities to continue to serve customer demand online through its scaled e-commerce platform.”
Gap Global’s net sales had declined by 50 percent, while online sales had decreased 5 percent and store sales had fallen 64 percent. At Old Navy Global, net sales had decreased 42 percent, while online sales had increased 20 percent and store sales had fallen 60 percent.
Banana Republic Global’s net sales had fallen 47 percent, while online sales had declined 2 percent and store sales had fallen 61 percent. At Athleta, net sales had decreased 8 percent, while online sales had jumped 49 percent and store sales had fallen 50 percent.
In separate news, American Eagle Outfitters, Inc. saw digital demand accelerate in Q1, fueled by strong shopper engagement and the health of the brand. Management had reported that eCommerce sales increased 33 percent and that inventory liquidation as well as store closures had a significant impact on its first-quarter results.