For the second quarter Gap’s group sales are up by 7.5 per cent. US sales rose 9.3 per cent. However, growth has slowed since Q1. The main problem is the range. The assortment continues to look same and boring, with little effort being made to create newness or points of interest. This creates two problems. First, it discourages people from visiting and purchasing. Second, it means Gap struggles to charge full price and has to resort to continuous discounting to try and stimulate sales.

The brand is adrift and needs a much clearer identity and sense of purpose. This is now an urgent requirement as a lot of other apparel brands – like J Crew, American Eagle, and Abercrombie & Fitch – are all upping their game and producing more consumer-centric collections.

While the market is moving forward, Gap is, at best, standing still. Total sales growth of Old Navy accelerated over the prior quarter, rising by 13.7 per cent. The strong consumer economy aided Old Navy, especially among families who were willing and able to spend more. However, the fact that the division continues to produce nice fashion edits at good price points is key to its success. Old Navy is adding plus sizes to the range. Banana Republic also managed to put in a better showing.