Athleta’s sales were up 6 percent in the second quarter as a surge in online sales of 74 offset a 45 percent decline in store sales, according to the quarterly report of its parent, Gap Inc. Comparable sales at Athleta were up 19 percent.

The comparable sales calculation reflects online sales and comparable sales days in stores that have reopened.

Gap said about Athleta, “The brand continues to benefit from the highly relevant value-driven active and lifestyle space in which it participates, further fueled by the brand’s deep customer engagement through its powerful omnichannel model.”

Companywide, Gap Inc.’s sales were down 18 percent year-over-year, reflecting a 95 percent increase in online sales, offset by a 48 percent decline in store sales, which were impacted by partial closures during the quarter. During May, Gap Inc. began reopening stores previously closed as a result of the COVID-19 pandemic, with approximately 90 percent of its global fleet open as of August 1.

Among its other concepts:

  • Old Navy Global: Net sales were down 5 percent reflecting an increase in online sales of 136 percent, offset by a 36 percent decline in store sales. Comparable sales were up 24 percent.
  • Gap Global: Net sales were down 28 percent reflecting an increase in online sales of 75 percent, offset by a 55 percent decline in store sales. Comparable sales were up 12 percent.
  • Banana Republic Global: Net sales were down 52 percent reflecting an increase in online sales of 26 percent, offset by a 71 percent decline in store sales. Comparable sales were down 27 percent.

Operating profits fell 74.1 percent to $73 million from $282 million. The net loss came to $62 million, or 17 cents a share, from $168 million, or 44 cents, a year ago.

Gap Inc. said second-quarter results improved meaningfully compared to the first quarter with online sales nearly doubling year-over-year as the company leveraged its Omni capabilities through its scaled e-commerce platform. While nearly all stores were temporarily closed due to the COVID-19 pandemic at the start of the second quarter, the company worked to quickly reopen stores where permitted beginning early in the quarter using industry-leading safety measures for customers and employees. The company delivered positive operating income and improved its cash balance by over $1 billion compared to the first quarter, ending the quarter with a cash and cash equivalents balance of $2.2 billion.

“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 e-commerce business, with approximately 50 percent online penetration, demonstrating our ability to pivot to a digitally-led culture,” said Sonia Syngal, chief executive officer, Gap Inc. “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.”

Photo courtesy Athleta