Gap sales increase despite ‘challenging year’

Fashion retailer Gap has reported a 1% increase in net sales to $4.7bn (£3.7bn) in its fourth quarter results, despite a “challenging year”.

Interim CEO Bob Fisher said the company began to see “stabilisation” in Q4, driven “primarily by improvements in Old Navy’s performance”. 

However, Gap, the parent company of Banana Republic and Old Navy, saw comparable sales decrease by 5% during the period, while sales at both sub-brands remained “flat”.

Incoming CEO Sonia Syngal also said the recent outbreak of coronavirus has resulted in the company facing a period of “uncertainty”, which could have an impact on its supply chain and customer demand.

She said: “We are focusing on decisive actions that will ensure we emerge well positioned to compete in the years ahead, and I am impressed by how diligently the teams have navigated the events of the past weeks.” 

Syngal is set to become Gap’s new CEO and will succeed Art Peck, who stepped down from the position in late 2019.

Following the results, Gap also announced the appointment of Katrina O’Connell as its new CFO. O’Connell succeeds Teri-List Stoll, who served in the role since January 2017.

She started her career at Gap in 2003 and has held multiple positions in the company which include vice president of corporate finance and investor relations, as well as CFO of Banana Republic and Old Navy.

Syngal said: “Katrina brings more than two decades of Gap, Inc. experience, across both brands and functions. Her command of finance, portfolio management and strategy, coupled with her strong operating capabilities from her time leading inventory management, make her uniquely qualified to take on this role.

“I’m fortunate to have had her as a partner in leading Old Navy over the past three years, as we defined the growth roadmap for the brand, and I look forward to working alongside her in this new capacity.”