Gap Inc., the American fashion company, has announced an encouraging 5% increase in comparable sales for the third quarter of 2020. This growth was largely driven by the strong performance of its Athleta and Old Navy brands. While overall net sales remained flat at $3.9 million, Gap experienced a 20% decline in brick-and-mortar sales but a significant 61% increase in online sales, accounting for 40% of the company’s total revenues for the quarter.

Notably, Old Navy saw a 15% increase in net sales and a 17% rise in comparable sales, with its online business playing a crucial role in driving this growth. Athleta, on the other hand, achieved even stronger results, with a remarkable 35% increase in net sales and a 37% rise in comparable sales, making it the brand’s best-performing quarter ever. In addition to robust digital sales, Athleta also benefited from venturing into the sale of masks.

Unfortunately, Gap’s flagship brand experienced a decline of 14% in net sales and a 5% drop in comparable sales. Banana Republic, another brand under Gap Inc., suffered a significant decrease of 34% in net sales and a 30% decline in comparable sales.

Despite these mixed results, Gap Inc. reported a net income of $95 million, compared to $140 million in the same period last year. The company’s CEO, Sonia Syngal, attributed these results to the implementation of the Power Plan 2023, highlighting the company’s focus on sales growth, profitability, and investments in demand generation, which have helped to engage customers during these challenging times.

In addition to these financial updates, Gap Inc. also revealed the appointment of two new executives. Asheesh Saksena will join the company as Chief Growth Officer in January 2021, where he will lead the retailer’s growth initiatives. Saksena brings a wealth of experience from notable leadership positions at Best Buy Health, Cox Communications, Time Warner Cable, and Accenture. Furthermore, Sandra Stangl will become the President and CEO of Banana Republic in December 2020, with the responsibility of overseeing the brand’s repositioning efforts. Stangl brings extensive experience from her time at Williams Sonoma, including her role as President of Pottery Barn Brands.

Looking ahead, Gap Inc. refrained from providing a detailed financial outlook for the fourth quarter or the full fiscal year due to the ongoing uncertainty caused by the Covid-19 pandemic. However, the company did express its expectation for the fourth-quarter net sales to be equal to or slightly higher than the prior-year period. With the addition of new executives, Gap Inc. remains optimistic about its ability to execute its Power Plan 2023 and successfully navigate the future.

Useful links:
1. Gap Inc. Official Website
2. Athleta News and Updates