The popular store chain most recently announced worse results and changes in the company's leadership. Gap is currently dealing with multiple issues and continues to search for a new CEO. Store sales are down 3% and online sales, which account for 41% of total net sales, are down 10% compared to 2022.
Under Gap are brands such as Old Navy, Banana Republic and Athleta. The company's main challenges include current losses, excess inventory, and filling the CEO position. Gap plans to close 50 to 55 Gap and Banana Republic stores and open 30 to 35 Athleta and Old Navy stores. Net sales for the first quarter are forecast to be down from the prior fiscal year, and net sales for fiscal 2023 are also forecast to be lower.
Old Navy is more or less Gap's primary source of revenue, which came in at $2.2 billion, down 6% from a year ago. The problem for Gap is fewer lower-income consumers due to high inflation. Gap's sales declined 9% year-on-year to EUR 1.1 billion.