Old Navy more important than ever to Gap Inc.
The value-driven division of Gap Inc. has evolved into the company’s growth engine, reported Glossy.com. Analysts predict the division will hit $10 billion in sales in the next few years. (According to 1010data, Old Navy is responsible for 75% of Gap Inc.’s annual profits.)
“Old Navy, for its part, is an amazing engine for growth,” Sebastian DiGrande, executive VP of strategy and chief customer officer at Gap, said in the Glossy.com report. “It has incredibly broad appeal to the American consumer. Yes, it is a value brand, but value is very broadly defined. It has attractive pricing, but it’s also the quality and style of the product, the fun experience and the focus on family that [resonates with] the customer.”
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J.Jill Q3 tops Street
Women’s apparel retailer J.Jill managed to beat analysts’ estimates in its third quarter even as its income declined.
Total net sales increased 1.6% to $162.0 million in the quarter ended October 28, from $159.4 million in the year-ago period. Analysts had expected revenue of $156.9 million.
Total same-store sales decreased by 0.6%. Direct-to-consumer net sales represented 39.5% of total net sales, compared to 40.4% last year.
The company reported net income of $6 million, down from $8 million last year. Adjusted earnings were $0.13 per share. Analysts had expected earnings of $0.09 per share.
“While we are disappointed with our overall performance for the third quarter, we are pleased to have ended the period with positive trends in October driven largely by our retail store performance,” said Paula Bennett, president and CEO, J.Jill, which operates 270 stores. “Thus far in the fourth quarter, we have returned to total comparable sales growth, with our current product offering better aligned to what our customer expects from J.Jill.”
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