For the third quarter ended October 31, 2020, American fashion company Gap Inc reported a 5 per cent increase in its comparable sales as the retailer’s Athleta and Old Navy brands continued to shine. Net sales of the San Francisco-based company remained flat at $3.9 million compared to the same period in the prior year. Brick and mortar sales declined by 20 per cent which were offset by a 61 per cent increase in online sales.
The retailer’s Old Navy brand posted 15 per cent and 17 per cent increases in its net and comparable sales, respectively, with the acceleration of its online business making a significant contribution to this progress.
Net sales of Athleta increased 35 per cent, while its comparable sales rose 37 per cent. Its digital sales contributed more than 50 per cent of its revenues in the quarter, the brand also benefited from its recent expansion into selling masks.
In contrast, Gap’s eponymous flagship brand experienced a 14 per cent decrease in its quarterly net sales and a 5 per cent decline in its comps. Banana Republic’s net sales fell by 34 per cent, while the brand’s comparable sales dropped 30 per cent.
The company also appointed two new executives. Effective January 2021, Asheesh Saksena has been appointed as the group’s chief growth officer, a newly created position focused on leading the retailer’s growth initiatives. He previously served as president of Best Buy Health.
Sandra Stangl has been appointed as the new president and CEO of Banana Republic, a role in which she will help lead the brand’s repositioning efforts, starting December 2020.