Gap Inc. (NYSE:GPS) delivered its sales results for this week. For the month of April sales had dropped for the retailer from 7.4% to $1.12 billion. Gap reported that company-wide sales were down 5 percent at stores open more than a year. It was reported that sales in the first quarter were down to $3.44 billion as compare to $3.66 in the first quarter of 2015.
Gap shares fell down 11 percent to $19.27 a share. This is the lowest levels the shares has been worth since 2012. The company has been through a lot recently. Former global president of Old Navy, Stefan Larrson left the company to work as CEO of Ralph Lauren. Gap has appointed Sonia Syngal, a veteran of the company to take Larrson’s place. Both the creative directors of Old Navy, and Banana Republic were removed from their positions in order to restructure the company and brands. Gap has also been shutting down stores. Last year the company closed down 140 stores. Gap announced on Monday that it would close some of its Old Navy, and Banana Republic stores mostly outside the United States.
“Our industry is evolving and we must transform at a faster pace, while focusing our energy on what matters most to our customers,” Art Peck, Gap’s CEO, said in a statement. “We are committed to better positioning the business to recapture market share in North America and to capitalizing on strategic international regions where there is a strong runway for growth, said Art Peck, CEO of Gap.
The company received a 4 percent drop in its Gap brand, a 7 percent decline at Banana Republic, and a 10 percent decrease at Old Navy.
Gap Inc. will report its first-quarter results on May 19.