Shares of GAP Inc. (NYSE: GPS) are up roughly 7% today at USD 27.26 despite coming up short on their 4th quarter sales estimate. The Clothing Retailer’s net sales are down 5.3% following the closure of 228 of their brick and mortar stores due to global pandemic restrictions, though GAP’s online sales are up 49% this past quarter. The Company reported a net profit of USD 234 million and an EPS (Earnings Per Share) of 28 cents a share compared to an estimated 17 cents. “COVID-19 presented the biggest crisis our company or industry has ever faced, and alongside our employees, our customers, our communities and the rest of the world we faced challenges that defined a new path for every one of us”, said GAP CEO Sonia Syngal.
Last June shares of GAP shot up 42% when Syngal announced the Company’s 10-year partnership with Kanye West. The deal, worth about USD 3 billion, would allow GAP to start selling the rapper’s “Yeezy” clothing line in stores sometime in the first half of 2021. Following a conference call with West, Syngal described him as being “excited” and “very focused on this incredible opportunity” going forward. After the collapse of the market due to the pandemic, shares of GAP are up an impressive 75% on the year. As pandemic restrictions are lifted globally and the “Yeezy GAP” product line officially begins, GAP’s CEO expects sales this year to return to the levels they were at prior to the pandemic.