Net sales

Gap reports 21% increase in net sales for FY21

US clothing and accessories retailer Gap reported $16.7 billion in net sales for the financial year 2021 (FY21)which represents a growth of 21% compared to FY20 and 2% compared to FY19.

The company’s comparable sales were also up 6% from last year and 8% from 2019.

Gap’s FY21 digital sales were up 57% from two years earlier, accounting for 39% of its total net sales.

The retailer’s diluted earnings per share (EPS) was $0.67, while its adjusted EPS was $1.44.

In the fourth quarter (Q4), which ended Jan. 29, Gap net sales increased 2% to $4.5 billion but were down 3% from 2019.

The company’s comparable sales for the quarter increased 3% from the same period last year and 3% from 2019.

Its digital sales for the fourth quarter were also up 44% from two years prior, accounting for 43% of its total business.

Gap’s operating margin for the quarter was 0.2% on a reported basis, while its adjusted operating margin was 0.4%.

The retailer expects its revenue for FY22 to grow in the low single digit range compared to FY21 and its diluted EPS to be between $1.95 and $2.15.

Gap Executive Vice President and Chief Financial Officer Katrina O’Connell said, “As we move into 2022, we are focused on creating shareholder value through our business model, enabled by the progress we we have made against our strategy by repositioning unprofitable areas of the business and developing brand relevance.

“Our primary focus is the long-term health of the business and achieving profitable growth year after year.

“We are clear on our priorities for 2022 and we are focused on improving operational efficiency and, above all, on sustainable and profitable growth.”

Gap ended fiscal 21 with 3,399 stores in more than 40 countries.

In October last year, the retailer bought Context-Based artificial intelligence (AI) startup 4 Casting.