Gap recovers: increases sales 8%, profit up 13% in first nine months
The American company, the fourth biggest fashion retailer in the world, has registered a profit of 727 million dollars (636 million euros) between March and November.
Gap continues to see the results of its restructuration. The American company, the fourth biggest fashion retailer in the world, has registered a profit of 727 million dollars (636 million euros) during the first nine months of the fiscal year, a 13% more than in the same period last year.
The group’s revenue, on the other hand, has also evolved positively, reaching the 11.95 billion dollars (10.47 billion euros) 7.9% up versus the first nine months of 2017. However, Gap’s pre-tax profits decreased, and stood at 957 million dollars (838 million euros), an 8% less than the previous year.
The company has explained that good results are supported by the income of its brands Old Navy and Banana Republic, which have improved their sales during the third quarter, a 11.4% and a 9.2% respectively. The company does not provide the accumulated result of its brands in the first nine months.
Gap has registered a positive evolution in all its brands except in its same-named chain, which has decreased a 1.6%
Nevertheless, the group has claimed not to be satisfied with the result provided by its main brand, Gap, which has closed eight stores between September and November in its European, Asiatic and North American markets. The company’s sales in the third quarter stood at 738 million dollars (646 million euros), 1.6% less than during the same period last year.
By the end of the third quarter, the company operated with a total of 3,688 stores. 1,131 of them belonged to the Old Navy chain, 1,278 correspond to Gap points of sales, 619 to the brand Banana Republic, 157 to Athleta and 36 were owned by Intermix.
The company, which has been immersed in a deep restructuration for several years, released last September its first brand in ten years: Hill City, specialised in the premium segment of male’s sports fashion. The brand is sold only through the group’s online platform.
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