Gap Is Planning To Streamline Its Operation In The Face Of Declining Sales.

The picture shows Gap company's flag.

Old Navy's store is the most important brand of the company, Old Navy accounts for about 42% of the company's total revenue, and the first quarter sales of Old Navy fell 6% again in the first quarter of 2012.

U.S.A

brand

In the face of continued decline in sales, plans are being made to streamline the operation process.

It is reported that the company's first quarter and April's dismal performance, Gap spokesman said on Monday that the company is assessing its brand in North America outside the Banana Republic and Old Navy performance, plans to strengthen the development of the most potential market.

However, the spokesman has not disclosed the key areas of development, and the details will be disclosed in the first quarter of May 19th.

CEO Art Peck of Gap points out that the fashion industry is changing. Companies must speed up their development and devote their energies to the most important customers.

The company will strive to better position its business in order to regain its market share in North America, and at the same time, the company will work out feasible business strategies for the international market to ensure stable growth in the international market.

Last year, due to business reasons, the company reorganized 175 stores in North America in the past few years, which closed 140 stores in the first half of last year, and closed some stores in Europe.

In addition, North American headquarters laid off about 250.

In recent years, Gap has missed many opportunities and faced increasingly heavy profit pressure. In the past few years, management personnel changes have been uninterrupted.

Gap is not the only fashion company squeezed by losses. It is reported that the Scoop NYC of the American casual wear brand has been closed, and last week the US youth apparel brand Aeropostale declared bankruptcy.

In addition, another American casual wear brand, J. Crew, is being squeezed by fast fashion. It is facing tough sales trends. Department stores like Messi and J.C. Penney are also dying in the first quarter, while sales of luxury goods stores like Saks Fifth Avenue and Neiman Marcus are slightly weaker.

Gap's first quarter sales fell 5% year-on-year, with net sales of $3 billion 440 million in the first quarter and net sales of $3 billion 660 million in the same period last year.

In April, sales fell by 7%, ending in April 30th, and net sales in April amounted to $1 billion 120 million, compared with $12.1 in the same period last year.

The company said that streamlining the operation process will help companies to be more efficient and flexible, and make full use of their scale advantages.

Same store sales, down 4% last year, dropped another 5% in the first quarter.

The company's brand Gap fell 3% in the first quarter, down 10% in the same period last year, and Banana Republic sales fell 11%, sales fell 8% last year, while Old Navy sales fell 6%, compared with 3% in the same period last year.

Sales in April dropped by 7% again, down 12% from the same period last year.

Its brand Gap sales fell 4% in April, down 15% in the same period last year, and Banana Republic sales fell 7%, sales fell 15% last year, while Old Navy sales fell 10%, compared with 6% in the same period last year.

Gap expects earnings of 31 cents to 32 cents per share in the first quarter of fiscal year 2016, lower than analysts estimate for 44 cents.

With the weakening of sales in April, the pressure on gross margins increased, and the pressure on the company's inventory increased further.

As for the development speed of the company's business is not as fast as expected, Gap spokesman stressed that the company believes that the business strategy centered on product, shopping experience and talent is correct. The company has made good progress, resulting in many factors contributing to its unsatisfactory performance, including the macro environment of clothing retailing.