Gap Inc recently revised its sales outlook for 2021 as consumer demand for clothing and fashion items continues to surge. This is the second time Gap has decided to raise its full-year net sales forecast. Gap, and other retail stores, have done well since earlier this year when pandemic regulations first went away. Americans, wanting to go out and gather with friends for the first time in a while, spent money to create a new wardrobe. That momentum has yet to die down, even with new Delta variant concerns.
Retail stores have also done well this back-to-school season, according to many different clothing companies. Gap Inc — which includes Old Navy and Athleta — did well during both the second quarter and this recent back-to-school season. During the second quarter, Old Navy’s sales rose about 21% when compared to pre-COVID levels, whereas Athleta rose about 35%.
The latest revised forecast details net sales growth at about 30%. Previously, it was forecasted that net sales would grow only somewhere around 20%.
Gap Inc, and all the many clothing brands that fall under the Gap umbrella, have done exceedingly well in 2021 thus far. Kanye West and Gap’s collaboration helped bring in many new customers. Consumer demand for many different clothing items this summer has also resulted in a surge in sales.
Gap Inc, like so many other clothing retailers, quickly realized that they needed to pivot in order to successfully survive the COVID-19 pandemic in 2020. Just like many other fashion retailers, Gap and their many brands pivoted to focusing on their digital businesses and marketing. There has been a surge in online shopping since the pandemic began. Even though many are back to shopping in stores, the Delta variant — which has caused infections to surge throughout the nation — will more than likely keep online business booming. As a result, Gap Inc recently announced that they bought Drapr, a virtual dressing room that allows customers to try on clothing while safely at home.
Gap Inc still does have some problems that they are attempting to work through, just like so many of the other retail businesses. Global supply chain issues have continued to create issues for the company. They stated that they would also be investing in air freight to help keep up with delayed inventory deliveries.
Gap Inc isn’t the only retail business investing in air freight. As so many other retail and clothing businesses are continuing to thrive, they are attempting to solve one of their biggest issues: meeting high consumer demand amid global supply chain issues. Abercrombie & Fitch also recently announced that they were investing in air freight options.
Gap is also attempting to work through factory closures in other countries that are hindering its goal to meet consumer demand. Many businesses in a variety of different industries have also struggled with this. As the Delta variant causes infections to surge around the nation, as well as the world, many businesses may have to continue putting their plans on pause as factories close for weeks because of outbreaks.