Gap, Inc, the largest US based specialty apparel firm, has reported net sales of $3.9 billion in the third quarter of fiscal 2021. The gross profit of the company also increased to $1.66 billion from $1.62 billion in the third quarter of FY20. The current quarter gross margin of 42.1 per cent is the highest third quarter rate in over decades.
The company’s online sales also grew 48 per cent compared to the third quarter of 2019 as the company remains focused on digital power by investing in its e-commerce platform, strategically closing unprofitable stores and partnering to amplify in international markets.
The net sales of Old Navy increased by 8 per cent compared with the corresponding quarter of 2019 while the global comparable sales of Gap increased 7 per cent on year-over-year basis.
Gap, Inc, the largest US based specialty apparel firm, has reported net sales of $3.9 billion in the third quarter of fiscal 2021. The gross profit of the company also increased to $1.66 billion from $1.62 billion in the third quarter of FY20. The current quarter gross margin of 42.1 per cent is the highest third quarter rate in over decades.
Likewise, the net sales of Athleta increased by 48 per cent compared with the third quarter of 2019. During the quarter, Athleta expanded its footprint by launching its Canadian online business at the end of August and opening its first company-operated Canadian store in Vancouver at the end of September, followed by its second store which opened in Toronto last week. The brand is laying the foundation for greater international expansion with franchise partnerships in Costa Rica and Europe. Last month, Athleta released its first item with Simone Biles, which is a limited-edition Girl’s hoodie, with a bigger collection planned for Spring 2022.
“While we entered the third quarter with growing momentum, acute supply chain headwinds affected our ability to fully meet strong customer demand. Still, we made an intentional investment in building enduring customer loyalty with accelerated use of air freight to serve them this holiday, choosing long-term growth opportunity over near-term impact to profitability,” Sonia Syngal, the chief executive officer of the company, said in a press release.
The company also paid a dividend of $0.12 per share during the current quarter of fiscal year 2021.
Based on Q3 FY21 performance, the company now expects full-year revenue growth to be about 20 per cent compared to FY20.
Fibre2Fashion News Desk (DD)
