The company’s first-quarter revenue rose 1% to $3.5 billion, with comparable sales up 2% in the three months ended May 2. Offline retail grew 3%, while online sales declined 2%, writes FashionNetwork.
The Gap brand was the key driver, with comparable sales up 10% and revenue reaching $796 million – one of the division’s best results in decades. Old Navy, the group’s largest brand, added 1% to $2 billion, while Banana Republic also posted moderate growth of 2%. At the same time, Athleta continues to be a troubled asset: comparable sales declined by 11%.
Gap Inc. reported net income of $339 million for the quarter and diluted earnings per share of $0.90.
CEO Richard Dixon said that Gap Inc. continues to strengthen its position and recorded its ninth consecutive quarter with comparable sales growth. He said the Gap brand delivered one of its best results in more than 20 years, reflecting the effectiveness of its ongoing transformation strategy.
On the back of the results, the company raised its full-year earnings per share forecast to $2.83 to $2.93. Revenue for the year is expected to grow 1-2%.
An additional factor of interest to the brand was the cooperation with designer Victoria Beckham: in spring the companies presented the first capsule collection, which became the start of a long-term partnership and part of Gap’s image renewal strategy.
