In its second-largest acquisition, Amazon buys the company for $970 million.
Web sales were the only bright spot in another flat financial year for Gap Inc. In 2006, combined web sales for the multi-channel retailer’s Gap, Old Navy and Banana Republic brands grew by 22.7%, while total sales declined by 0.5% to $15.94 billion.
Web sales represented the only bright spot in another flat year for Gap Inc.
In 2006, combined web sales for the multi-channel retailer’s Gap, Old Navy and Banana Republic brands grew year-over-year by 22.7% to $730 million from $595 million, while total sales declined by 0.5% to $15.94 billion from $16.02 billion in the prior year.
OldNavy.com remains Gap’s biggest and fastest growing online brand. In 2006, web sales for OldNavy.com rose by 28.7% to $345 million from $268 million in 2005. BananaRepublic.com had 2006 web sales of $117 million, an increase of 28.6% from $91 million in the prior year, while Gap.com sales totaled $266 million in 2006, up 14.1% from web sales of $233 million in 2005.
“In 2007, we are focusing on three priorities: fixing our core business by creating the right product and store experience, retaining and developing the best talent in the industry, and examining our organization structure to ensure that we enable our brands to make decisions and effect change more efficiently,” the company says in its just-filed annual report.
Overall the web represented 5% of total revenue for the Gap, No. 24 in the Internet Retailer Top 500 Guide.