Gap Inc. saw its online sales jump by an impressive 61 percent in its third-quarter ending October 31.
The increase in online sales helped offset a 20 percent decline in in-store sales during the pandemic. That being said, the company’s global sales were on a 14 percent year over year decline, with comparable sales down by 5 percent.
Gap Inc’s Chief Executive Officer Sonia Syngal said that the company’s investment in demand generation has helped drive engagement, particularly in today’s dislocated market as consumers are looking to shop with trusted brands that provide easy and safe shopping options.
The company’s global sales suffered from its Banana Republic division faring poorly. While net sales showed some improvement since Q2, they declined by 34 percent year-over-year in Q3.
For reviving Banana Republic sales, the company said that it is focussing on improving its inventory options by moving away from workwear and is instead offering more options for casual fashion, which has gained more appeal among its customers since the stay-at-home mandates began in March this year.
Gap’s Athleta brand and Old Navy unit, meanwhile, performed well. For one, Athleta saw its sales increase by 35 percent year over year, with comparable sales reaching an all-time high of 37 percent. Old Navy also saw its global sales improve by 15 percent.
“Old Navy continued to experience meaningful acceleration in its online business as strong customer response to product was further bolstered by compelling and relevant digital marketing investment,” the company said.
Overall, the company reported $3.99 billion in net sales, which was ahead of the $3.82 billion analysts had expected. As of Q3, the company operated 3,785 retail locations in 43 countries.