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Gap Reports 32% Decline in Fiscal Q3 Profit; Online Sales Up 61%

Net sales were flat year over year, with in-store sales suffering from the pandemic.

Image source: Gap Inc

(Reuters) – Gap Inc reported a 32% slump in quarterly profit on Tuesday, hurt by higher marketing expenses, sending the apparel retailer’s shares down about 7% in extended trading.

The retailer reported a surprise rise in third-quarter quarter comparable sales, powered by online demand for its Athleta athleisure wear and Old Navy apparel from stuck-at-home customers.

The San Francisco-based retailer reported a net income of $95 million, or 25 cents per share, in the quarter ended Oct. 31, down from a profit of $140 million, or 37 cents per share, a year earlier.

Comparable sales rose 5%, compared with the average analyst estimate of a 0.62% fall, according to IBES data from Refinitiv.

Reporting by Nivedita Balu in Bengaluru; Editing by Sriraj Kalluvila

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Source: Reuters