Gap Inc. has announced that holiday sales and profits were better than expected and have increased by 1% in Q4.
According to an article on Fashionista, Gap Inc. has announced that holiday sales and profits at the brand were better than expected. Sales at the brand increased by 1% in the fourth fiscal quarter 2016.
The company’s net sales increased by 1% to $4.43 billion, a $40 million increase from last year. Sales also beat analysts estimates of $4.4 billion despite declining sales for other, more successful retailers. Net sales also increased by 2% to $828 million in the four weeks from December 31st – January 28th. That’s another $15 million increase from 2016.
The company also reported increasing sales at its brands as well. Old Navy reported a 5% sales increase compared to an 8% decline last year. Gap’s sales did not increase from last quarter compared to negative 3% last year. Banana Republic, whose sales have declined the most, went from negative 14% to negative 3%.
Those sales increase may not seem like much but they are given the company’s previous sales reports. Banana Republic, for example, still has negative sale but it had an 11% increase. That was during the holiday season where sales at many other brands declined.
Gap CEO Art Peck released a statement saying, “against a challenging retail backdrop, we’re pleased to report growth in our topline and comp sales during the critical holiday quarter. We remain focused on actions that will strengthen our brands and recapture market share.”
Though Gap Inc’s sales increased during Q4 the brand will have to get more people to buy their products for sales to increase more. The brand had quite a few sales during the holiday season but trends that Zara and H&M have already been following seem to have been what made the brand’s sales increase.
So, what do you think? Will Gap’s sales increase? Let me know in the comments below. Also don’t forget to subscribe to get new posts sent directly to your inbox and follow me on Facebook, Instagram, and Snapchat.
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