A man walks past a store on January 12, 2021 in New York City.
Angela Weiss | AFP | Getty Images
Gap Inc. predicted a rebound in sales growth on Thursday in 2021, with customers hoping to return to their stores soon and spend more money on clothing while trying to resume some social activities.
Its shares rose more than 3% in off-hours trading.
The garment maker reported fourth-quarter sales that were lower than estimated, as the ongoing coronavirus pandemic forced stores to temporarily close in Europe, parts of Asia and Canada. But he made a profit, thanks to his efforts to sell more merchandise at all costs and the progress he made in making stores insufficient.
He showed continued strength in his Old Navy and Athleta brands, which focus on the basics and workouts. But its namesake brand Gap and the Banana Republic label reported another quarter of sales declines.
For the quarter ended Jan. 30, Gap reported a net profit of $ 234 million, or 61 cents per share, compared to a loss of $ 184 million, or 49 cents per share, a year earlier.
Profits in the last period included a tax gain of approximately 45 cents per share and an impairment charge of approximately 12 cents per share related to Gap’s Intermix business. According to a Refinitiv survey, analysts had demanded earnings of 18 cents per share. It was not immediately clear whether analysts had considered the impact of these articles.
Net sales fell about 5%, to $ 4.42 million, from $ 4.678 billion a year earlier. This was lower than analysts ’estimates of $ 4.666 billion.
Sales at the same store of Gap’s Athleta sportswear brand grew 26% year-over-year, up 7% in Old Navy. The eponymous Gap brand, however, saw a 6% drop in sales at the same store and Banana Republic said the key metric fell 22%.
Gap said its overall online sales increased 49%, accounting for 46% of net sales during the quarter.
For Prosecutor 2021, the company calls for net sales to increase by an average to high percentage of teens compared to 2020. This means Covid-related impacts will continue during the first half of 2021 and the retailer will return to more standardized level. – Pandemic sales level in the second half of the year, the company said.
According to Refinitiv, analysts called for an annual revenue growth of 14.1%.
He expects earnings to range from $ 1.20 to $ 1.35 per share. Analysts had forecast earnings of $ 1.28 per share.
Gap said it plans to open 30 to 40 Old Navy stores, along with 20 to 30 Athleta stores this year. And it will close about 100 Gap and Banana Republic stores worldwide.
Gap shares have risen about 75% over the past twelve months. The company has a market cap of $ 9.46 million.
Find the full Gap press release here.
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