American firm Gap's sales up 3% to $3.4 bn in Q1 FY24

Store sales experienced a 3 per cent uptick compared to the previous year, and Gap concluded the quarter with 3,571 store locations across over 40 countries, with 2,554 of these being company-operated.

Gross margin improved significantly to 41.2 per cent, a rise of 410 basis points from last year’s reported gross margin and 400 basis points from last year’s adjusted gross margin, the company said in a press release.

Operating income for the quarter was $205 million, resulting in an operating margin of 6.1 per cent. The company reported a net income of $158 million, with diluted earnings per share standing at $0.41.

Old Navy's first-quarter net sales reached $1.9 billion, reflecting a 5 per cent increase YoY, with comparable sales up by 3 per cent. The Gap brand maintained its net sales at $689 million, consistent with the previous year, and recorded a 3 per cent increase in comparable sales. Banana Republic reported first-quarter net sales of $440 million, a 2 per cent rise from last year, with a 1 per cent increase in comparable sales. Athleta achieved first-quarter net sales of $329 million, up 2 per cent YoY, and saw a 5 per cent increase in comparable sales.

"Gap delivered a strong quarter that exceeded expectations across key metrics. We gained market share for the 5th consecutive quarter with positive comparable sales at all brands, demonstrating improved relevance with our customers as we execute against our brand reinvigoration playbook. Our first quarter results are giving us confidence to raise both sales and operating income guidance for the full year," said Gap president and chief executive officer, Richard Dickson.

Fibre2Fashion News Desk (DP)