US clothing firm, Gap, has reported fiscal 2021 (FY21) net sales of $16.7 bn, representing a two percent increase versus fiscal 2019. Strategic permanent store closures and divestitures reduced net sales by seven percentage points versus 2019. Fiscal year 2021 online sales grew 57 percent versus 2019 and represented 39 percent of net sales.
Comparable sales for fiscal year 2021, ended January 29, 2022, grew 8 percent versus 2019 and were up 6 percent year-over-year. The comparable sales calculation reflects online sales and comparable sales days in stores that were open, the company said.
The company’s fourth quarter (Q4) FY21 net sales were $4.5 bn, down 3 percent compared to 2019. Strategic permanent store closures and divestitures reduced net sales by approximately 9 percentage points versus 2019. Online sales grew 44 per cent compared to the fourth quarter of 2019 and represented 43 percent of the total business. Fourth quarter comparable sales were up 3 percent versus 2019 and 3 percent year-over-year.
Fourth quarter net sales of the Old Navy brand were muted in part due to supply chain impacts, up 2 percent versus 2019 with comparable sales flat versus 2019. For the year, the brand crossed $9 bn in net sales, up 14 percent compared to fiscal year 2019 with comparable sales up 12 percent versus 2019.
Fourth quarter net sales of the Gap brand declined 13 percent versus 2019, with permanent store closures contributing an estimated 17 percentage points of decline. Global comparable sales increased 3 percent with North America comparable sales up 12 percent versus the fourth quarter of 2019. Fiscal year 2021 net sales were down 12 percent compared to fiscal year 2019, with permanent store closures reducing sales by an estimated 15 percentage points. Global comparable sales for fiscal year 2021 were up 2 percent with North America comparable sales up 12 percent versus 2019, according to Gap.
The Banana Republic brand’s fourth quarter net sales declined 11 percent versus 2019, with permanent store closures contributing an estimated 10 percentage points of the decline. Comparable sales were down 2 percent versus the fourth quarter of 2019. Fiscal year 2021 net sales were down 18 percent compared to fiscal year 2019, with permanent store closures reducing sales by an estimated 10 percentage points. Comparable sales for fiscal year 2021 were down 9 percent versus 2019.
As for the Athleta brand, its fourth quarter net sales were up 52 percent versus 2019 with comparable sales up 42 percent versus the fourth quarter of 2019. Fiscal year 2021 net sales were up 48 percent compared to fiscal year 2019 with comparable sales up 39 percent versus 2019. Athleta is on track to hit $2 bn in net sales by fiscal year 2023.
The company’s fiscal 2022 reported diluted earnings per share are expected to be in the range of $1.95 to $2.15 with adjusted diluted earnings per share in the range of $1.85 to $2.05.
