Apparently, demand is off the charts. During a conference call with analysts on Thursday evening, Syngal said, “It’s had a great response. We’ve had a much younger customer. We’ve had 75% of those customers who are new to the Gap brand. And that’s why we’re glad to be out the door “.
Beyond Kanye, Syngal said Gap has benefited from strong demand for all of its clothing, as consumers “adopted the summer with optimism.”
“We saw a celebration of the American style, the nostalgia of the 90s and the resurgence of Texan. All of this is in a sweet spot,” he said.
The hooded sweatshirt makes a great comeback
There has also been a resurgence of the Gap hoodie, which Syngal said was partly driven by TikTok viral videos.
“Our classic Gap hoodie is going on for a while, so much so that we re-posted it in a vintage brown color for pre-order this fall,” he said during the call, adding that there are “levels of high search “for Google and that sales of the teen version of the hooded sweatshirt far exceed the adult sizes.
“This is a brand that resonates. This is a brand that people care about and want to proudly wear on their chest,” he said.
The Gap hopes the Biles association will help Athleta “really start to gain strength with the client girl,” Gap chief financial officer Katrina O’Connell said at the conference call.
All of this helps boost Gap’s overall sales, which rose nearly 30% from a year ago and also increased 5% from pre-coverage levels in the second quarter of 2019.
Strength in Old Navy drove much of the success, as U.S. sales of the brand accounted for more than 60% of Gap’s total national revenue.
“Gap deserves credit for the way it handles Old Navy and has kept the brand fresh and interesting to buyers,” Neil Saunders, CEO or GlobalData, said in a report.
“This investment has paid significant dividends after the pandemic, as Old Navy collections of reasonably priced relaxed family clothing have resonated with consumers who want to freshen up cupboards and prepare children to go back to school. “Saunders added.
The Gap also said it hoped Banana Republic, a casual business brand that has been in trouble for a long time, would start spinning this fall. Sales increased from last year’s pandemic levels, but fell 15% from the second quarter of 2019.
Still, analysts marvel at how quickly Syngal has turned the whole company around.
“I don’t think you’ve ever seen a speed of transformation like the one you set in motion,” Barclays analyst Adrienne Yih said in the conference call.