GAP Men'S Sports Shoes Sold In China'S Official Website Are Not Eligible For Appearance Wear Resistance.

On 12 March, after the US stock market, GAP group announced the fourth quarter and the full year performance in 2019. Data show that in the 2019 fiscal year, GAP group's net profit fell 65% to $351 million over the same period. In March this year, GAP's Old Navy has just officially withdrawn from China. The group said it will close about 170 GAP brand stores worldwide this year.

Meanwhile, GAP group said its sales in the first quarter of 2020 will be about $100 million due to the impact of the new crown pneumonia epidemic.

Specifically, data show that in the fourth quarter of 2019, GAP sales amounted to US $4 billion 670 million, an increase of 1% over the same period last year, while the same store sales fell 1%, net loss of 184 million US dollars, gross margin of US $1 billion 670 million, an increase of 2% over the same period last year. In 2019, GAP group achieved sales of 16 billion 400 million US dollars, down 1% compared with the same period last year, and net profit fell 65% to 351 million US dollars.

GAP group interim CEO BobFisher said that the 2019 fiscal year was a challenging year. However, due to team efforts, the company began to see steady progress in the fourth quarter, mainly attributable to the improvement of Old Navy performance.

Old Navy has long been called the cash cow of the GAP group, but the latest report shows that the brand's performance last year was not satisfactory. In the fourth quarter of 2019, comparable sales of Old Navy were basically the same as that of the same period last year. In the 2019 fiscal year, the comparable sales of the brand decreased by 2% over the same period last year.

Gap's other sub brands, comparable sales in the fourth quarter of 2019, declined by 5% compared to the same period in the year of 2019. BananaRepublic was basically flat compared with last year, while sports brand Athleta decreased by 2% compared with last year. Compared with last year's figures, the comparable sales of the three brands decreased by 7%, 2% and 5%, respectively.

By contrast, Old Navy performed well last year compared with other sub brand data of Gap. But even if the status is important, GAP group said at the end of last year that its Old Navy would quit China in 2020, and Old Navy officially withdrew from China in March this year.

Previously, the GAP group had the idea of splitting Old Navy. It plans to separate the brand from listing independently and expand the scale to 10 billion US dollars with the strategy of store expansion. At the same time, the scale of GAP stores will be reduced. The plan is expected to be completed in 2020. However, in January this year, GAP suddenly renounced the plan and said it would focus on the profitability of BananaRepublic and GAP brands.

GAP group said that it will continue to close 170 GAP brand stores worldwide this year, and said it will lose about 100 million dollars in the first quarter of 2020 due to the impact of the new crown pneumonia epidemic.

"It is not yet possible to make a more reasonable prediction of the impact of the growing epidemic, and if the situation worsens, then the situation may be even worse." GAP group said.

It is noteworthy that the GAP group announced personnel changes at the end of last year and early this year, and that more leadership changes may be in progress. In the earnings report, GAP group announced the new appointment of personnel: Sonia Syngal began to hold CEO as of March 23, 2020. Since joining Gap group in 2004, Sonia Syngal has been the general manager of European Group business, Gap group international and senior vice president of international ole. In addition, KatrinaO Navy, chief financial officer of Old Navy, will replace TeriList-Stoll and become group CFO.

As GAP continues to "restructure" in 2020, the Group expects that comparable sales and net sales in fiscal year 2020 will continue to decline.

It is worth noting that in March 12th, according to the Shanghai market regulation WeChat public number, the Shanghai municipal market supervision and Administration Bureau conducted supervision and spot checks on the quality of footwear products sold on the Internet platform. 60 batches of products were tested this time, and 12 batches of them were unqualified after examination. The GAP men's sports shoes sold in China's official website were not eligible for appearance wear.