In an episode of the popular ABC show “Shark Tank” that aired last week, founders of the web-only fashion retailer ranked in the Second ...
Web sales increased 15.2% to $258 million from $224 million in the prior year.
Gap Inc., which recently announced plans for a major international e-commerce push, posted a healthy increase in second quarter web sales.
For the second quarter ended July 31, Gap, No. 23 in the Internet Retailer Top 500 Guide, reported:
- Web sales increased 15.2% to $258 million from $224 million in the second quarter of 2009.
- Total revenue grew year over year 2.2% to $3.32 billion from $3.25 billon.
- Comparable-store sales increased 1%.
- Net income grew 2.6% to $234 million from $228 million in the second quarter of 2009.
“Our economic model helped us deliver both sales and earnings growth for the second quarter, while we navigated some challenges along the way,” says CEO Glenn Murphy. “Looking forward, we’re committed to our strategy of growing sales and market share in North America as we also invest in our long-term global and online growth initiatives.”
Gap is boosting its e-commerce presence by extending shipping to 55 countries across five continents. The fashion retailer will ship to an additional 10 countries by the end of the year. The announcement comes less than two months after the company said it would open four retail stores and an e-commerce site in China later this year, the retailer says.
This week Gap also launched its Canadian e-commerce platform that took all of its brands live. The site features content in both English and French. “Canadians are increasingly seeking effective online retail options and we have made significant investments to build a dedicated e-commerce site in English and French to meet these needs,” says Toby Lenk, president of Gap Inc. Direct, the company’s e-commerce division. “Customers can now shop Gap, GapKids, babyGap, Banana Republic and Old Navy online with ease with one checkout, free returns and no hidden fees.”
Internet Retailer calculates the web accounted for 7.8% of total sales compared with 6.9% in the prior year. More important, the web accounted for nearly one-half - $34 million - of Gap's total growth in sales of $70 million in the second quarter.
For the first two quarters:
- Web sales increased 12.6% to $553 million from $491 million in the first two quarters of 2009.
- Total revenue grew year over year 4.2% to $6.64 billion from $6.37 billon.
- Net income grew 20.1% to $536 million from $443 million in the second quarter of 2009.
Internet Retailer calculates the web accounted for 8.3% of total sales compared with 7.7% in the prior year.