Gap contracts sales 2% but boosts benefit 36% in first quarter

Gap starts the year at double-speed. The American company has finished the first three months of exercise with a net benefit of 227 million dollars (202.7 million euros), a 35.9% more than the same period of the previous year.

The gross operating result (ebitda) has also positioned upwards within the period, until registering 302 million dollars (269.7 million euros), a 37.8% more. Gap’s billing, instead, has contracted within the period, registering a drop of a 2%, until 3,706 million dollars (3,310 million euros).

By brands, Old Navy has been the one registering a better evolution during the first three months of exercise. The chain, which is in a split process from parent company, has registered a rise of a 3%, until 227 million dollars (202.7 million euros).

The brand Gap, for its part, has contracted its incomes a 12.6% in the period, until 1,799 million dollars (1,606.8 million euros), while the chain Banana Republic has stalled its billing registering a growth of only the 0.7% between February and March, until 568 million dollars (507.3 million euros).

Art Peck, CEO of the company, has explained that he is not satisfied with the obtained results within the period. Besides, the executive has pointed “we are continuing to be strong in our decision to separate Old Navy, which we want it to be independently quoting in 2020”. Besides, the group has reviewed downwards its result for the end of 2019.