Gap online sales 10%

Gap Inc. said its comparable sales, a key gauge for retailers, fell 5% in the fourth quarter ended Jan. 28, compared with analysts’ average estimate of a 2.7% decline. Gap expects the revenue decline to continue this year.

The retail brand has been looking for a new CEO since July, when Sonia Syngal was ousted as the company struggled to manage inventory.

Gap online sales drop

Gap online sales dropped 10% in Q4? from a year earlier, chief financial officer Katrina O’Connell said in a March 9 call with investors. However, Gap online sales are up 29% compared with pre-pandemic 2019. Moreover, digital sales represented 41% of total sales in its fiscal 2022 fourth quarter.

The Gap Inc. is No. 19 in the Top 1000, Digital Commerce 360’s rankings of the largest online retailers in North America by web sales.

Brand breakdown

Comparable sales declined at all four of the company’s main brands: Gap, Banana Republic, Athleta and Old Navy. The latter has historically been a growth driver for the company but has struggled lately.

Profitability also took a hit. Gross margin was 33.6%, down from the prior quarter due to heavy discounting during the holiday season.

The Gap Q4 sales

The Gap brand’s fourth-quarter net sales declined to $1.1 billion from the year-ago quarter. That’s down 9%, whereas comparable sales dropped 4% year over year. The retailer did not break out Gap online sales.

The retailer said shutting down Yeezy Gap, the company’s partnership with rapper Ye, contributed to the sales drop in North America. Comparable sales in the region dropped 5% year over year.