GAP: makes a loss, but Old Navy and Athela resist

(CercleFinance.com) - Gap announces a loss in Q2, stemming from a sharp drop in sales because of store closures due to the coronavirus crisis.


Gap reported a net loss of 62 million dollars, or 17 cents per share, in the three months to the beginning of August, compared with a net profit of 168 million dollars (44 cents per share) a year go.

Sales fell by 18% to less than 3.3 billion dollars, with a 13% decrease in sales at comparable stores. Analysts were expecting sales of 3.6 billion dollars.

However, note that online sales jumped 95% over the quarter, it said.

This Friday, analysts highlight the sound performances of Old Navy, Gap's entry-level family clothing brand, and Athleta, its brand of sports goods for women, positioned on the "premium" segment.

The Gap share, which opened the session up following these announcements, declined by 0.1% half an hour into trading. Supported by the partnership signed with rapper Kanye West, the share has nevertheless climbed over 80% over the past three months.


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