The US clothing group Gap Inc. recovered strongly in the 2021/22 financial year. Sales significantly exceeded the level of the previous year, which was impacted by the Covid-19 pandemic, and the parent company of the brands Gap, Old Navy, Banana Republic and Athleta was able to return to profitability. On Thursday evening, the company forecast further growth for the current year.
In the past fiscal year, which ended on January 29, group sales amounted to 16.7 billion US dollars (15.2 billion euros). It rose by 20.8 percent compared to the previous year and exceeded the level of the pre-crisis year 2019/20 by 1.8 percent, although in the meantime the branch network has been significantly reduced for strategic reasons.
All Group segments contributed to the strong growth: The largest brand, Old Navy, increased its sales by 20.5 percent to 9.08 billion US dollars compared to the previous year, Gap increased by 19.9 percent to 4.06 billion US dollars. Banana Republic was up 35.2 percent to $1.98 billion, while Athleta revenue grew 27.5 percent to $1.45 billion
Thanks to the significant increase in sales, the group was also able to significantly improve its earnings: Operating profit amounted to 810 million US dollars, after an operating loss of 862 million US dollars had been posted in the previous year. The bottom line was a net result of 256 million US dollars (233 million euros). In 2020/21 the company had to report a deficit of 665 million US dollars, two years ago a surplus of 351 million US dollars was reported.
Although higher costs as a result of the ongoing global supply bottlenecks led to a loss in the fourth quarter, the group is looking forward to the new financial year 2022/23 with confidence: Sales are forecast to grow in the “low single-digit percentage range”, diluted earnings per share are expected to be reach $1.95 to $2.15. In the past year it was 0.67 US dollars.