- Gap Inc. CEO Art Peck says he plans to improve product to help its flagship brand and Banana Republic recover their market mojo.
- Sales fell 2% to $3.9 billion for Gap Inc. in the second quarter, and the company plans to close about 175 stores and eliminate 250 corporate jobs.
- Comparable sales for the Gap brand fell 6% last year, while Banana Republic sales declined 4%. Only the Old Navy brand saw an increase (3%) in comparable-store sales.
Peck said he will focus on shoring up product ahead of any forthcoming tweaks to the Gap and Banana Republic brands' marketing during a recent conference call with analysts reporting second quarter results.
The company spent $131 million on marketing in the second quarter, $11 million less than it did in the comparable quarter of 2014. The decline was due in part to the closing of the company’s underperforming Piperlime e-commerce brand, the company indicated.
Peck said shoppers can to expect to see renewed product for Gap as early as next spring under new global merchandising head Steven Sare, a veteran of Gap and Uniqlo. Banana Republic’s revitalization is already underway for the fall.