Fast Fashion Gap Closes 75 Stores To Save $280 Million

Recently, American fast fashion company

It said it would close Old Navy and Banana Republic stores outside North America, with a total number of stores closing 75.

Because the company will focus on revitalization of the North American market, the company's share price rose 4.2% after closing on Thursday.

It is reported that after the company announced its first quarter bleak performance, Gap group decided to close the 53 Old Navy stores in Japan and other international areas.

A company spokesman said that Old Navy's short-term growth target market in North America, brand recently opened stores in the Mexico market, and the Chinese market and global franchise stores also belong to the brand growth target market.

According to company insiders, it is expected that the closing of stores will lead to a reduction of about $250 million in annual sales, but on the basis of pre tax year, it will help companies save about $275 million.

Gap group has struggled in the past few quarters, coupled with pressure from competitors H&M, Forever 21 and Zara, sales continued to slack.

A company spokesman said that in order to achieve annual earnings target of analysts expected earnings of $1.92 per share, the trend of garment retail environment needs to improve from the first quarter.

Gap group CEO Art Peck pointed out: "with the whole

The acceleration of change is now the time to accelerate the pace of pformation through our product expansion and operation capabilities in the global portfolio.

By seizing every opportunity to practice our strategic advantages, our brand will make more full use of enterprise resources and better serve customers in various channels and countries. "

The company has noticed some signs of improvement, but stores are still scarce.

Customers of Banana Republic are reluctant to make purchases without discount.

The company revealed that the team is working hard to readjust the product.

Passenger flow is also

The problem is that retailers are trying to generate more traffic by changing their business plans.

According to the group's first quarter earnings report, its brand Gap fell 3% in the first quarter, while sales of Banana Republic fell by 11%; sales of Old Navy, which had been consistently good for sale, also dropped by 6%, which made the group feel very headache.

By the end of April 30th, Gap group's net profit fell 46.9% to $127 million in the first quarter, earning 32 cents per share, flat with analysts' expectations, and net sales fell 6% to $3 billion 440 million.

The company's share price closed at $17.28 on Thursday, and the company's share price has fallen by about 30% this year.