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Published
Apr 8, 2016
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Gap Inc.: 6% sales downturn in March

Published
Apr 8, 2016

Having already started its 2016/2017 fiscal year with a 3.3% decrease in February, the Gap group announced another downturn in March, with sales falling by 6%, reaching $1.43 billion. The downturn affected all of the retailer's brands.

Banana Republic


The Gap brand posted a 3% decrease, confirming the 7% fall recorded in March 2015. Banana Republic's rate of decline has increased, with a -14% compared to -3% a year earlier. And Old Navy, previously the only piece of good news in the monthly figures, posted a 6% decrease, a far cry from its 14% rise a year earlier.

The group also stated that it has reached April with "stocks higher than forecast." The stocks will be putting pressure on Gap Inc.'s gross margin in the first quarter, which will close at the end of April.

In the fiscal year closed at the end of January, Gap Inc. generated $15.81 billion (€14.12 billion) in sales. Even Old Navy, previously playing the role of the group's lifebuoy, did not manage to save the day. The result led to a 6.25 % downturn in sales, for an organisation which now operates 3,794 stores.

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