The company was already planning on closing some stores this year, but reports said the 225 number is larger than originally planned.
“Our strong performance in the second quarter reflects the customer response to our brands, products and experiences, particularly as we’ve rapidly adapted to the changing environment. We nearly doubled our ecommerce business, with approximately 50 percent online penetration, demonstrating our ability to pivot to a digitally-led culture,” said Sonia Syngal, chief executive officer of Gap Inc., in the release. “I’m confident that our purpose-driven lifestyle brands, size and scale, and advantaged digital capabilities are helping us win now and position us for growth in the future.”
The release noted that net sales were down 18 percent year-over-year, but it noted a 95 percent increase in online sales, which was offset by a 48 percent decline of in-store sales.
“The management team and our Board are highly engaged and attuned to investor considerations and looking at the portfolio considering all opportunities for value creation,” Syngal added. “What I will say is that what’s different about us today is that we are a leaner, faster, more focused Gap Inc. than prior. And I have never felt stronger than I do now in this moment that these four brands have the right to grow and that we expect to see tremendous potential within the portfolio. That’s what we’re focused on, and we’re focused on unlocking that value through strong execution, not divesting it.”
