Gap (NYSE: GPS) announced Thursday that sales during its first-quarter had surpassed pre-pandemic levels. Earnings improved year over year as customers returned to Old Navy and Athleta for a new summer wardrobe.
Ultimately, the retailer raised its sales outlook for the full year as e-commerce continues to persevere. According to Gap, about 80% of sales have come from outside the traditional shopping mall, such as online, strip centers or from street-level locations.
“As stores traffic came back, we sustained our digital dominance with 82% online growth versus 2019. And while Active and Fleece continue to soar, we saw a resurgence in summer fashion with dresses rebounding, showing that customers are emerging from the crisis wanting to express their style without sacrificing the comfort and digital convenience they’ve become accustomed to. Through the power of our brands, platform and portfolio, we deliver it all,” said Sonia Syngal, CEO, Gap Inc.
The company reported earnings of USD0.48 per share, compared to the expected loss of USD0.05 a share. Revenue totaled USD3.99 Billion, higher than analysts anticipated USD3.45 Billion.
“Our Power Plan 2023 is taking hold. Investments in demand-generation, coupled with macro tailwinds, supercharged our brands. Gap Inc. delivered sales growth of 8% over 2019 pre-COVID levels, with particular strength at Old Navy and Athleta, a healthy and growing Gap business in North America, and market share gains that outpaced the industry,” Syngal said.
Gap shares have risen 74% year to date and has a current market cap of USD13.2 Billion.