Store sales were flat compared to last year. The company ended the quarter with about 3,500 store locations in over 35 countries, of which 2,496 were company operated. Online sales increased 6 per cent in Q1, compared to last year and represented 39 per cent of total net sales, the company said in a press release.
American retailer Gap Inc. has reported net sales of $3.5 billion in the first quarter of fiscal 2025, up 2 per cent year-over-year, with 2 per cent growth in comparable sales and a 6 per cent rise in online sales, which made up 39 per cent of total sales.
Net income reached $193 million, with EPS at $0.51.
Gross margin rose to 41.8 per cent.
“Gap Inc. delivered strong first quarter results, exceeding financial expectations and gaining market share for the 9th consecutive quarter,” said president and chief executive officer, Richard Dickson. “We had positive comp sales for the 5th consecutive quarter, with our two largest brands, Gap and Old Navy, winning in the marketplace, demonstrating the power of our brand reinvigoration playbook. The rigor we’ve embedded across the organisation continued to serve us well, driving gross margin and operating margin expansion in the quarter. These results are yet another proof point that our strategy is working. In this highly dynamic environment, we are optimistic yet realistic and remain focused on controlling the controllables as we build our company for long term growth.”
The company registered gross margin of 41.8 per cent increased 60 basis points versus last year and net income of $193 million; with diluted earnings per share of $0.51. It ended the quarter with cash, cash equivalents and short-term investments of $2.2 billion, an increase of 28 per cent from the prior year. Net cash from operating activities was negative $140 million primarily due to seasonality. Free cash flow, defined as net cash from operating activities less purchases of property and equipment, was negative $223 million.
Fibre2Fashion News Desk (RR)
