In its second-largest acquisition, Amazon buys the company for $970 million.
E-commerce grew 18%, while total sales declined 1%.
Sales per channel went in different directions for Gap Inc. in the first quarter. Comparable-store sales declined but e-commerce grew at a healthy rate.
For the first quarter ended April 30, Gap, No. 24 in the Internet Retailer Top 500 Guide, reported:
- E-commerce sales rose year over year 18% to $348.0 million from $295.0 million.
- Total sales declined 0.9% to $3.29 billion from $3.32 billion in the first quarter of 2010.
- Comparable-store sales declined 3%.
- Net income declined 22.8% to $233.0 million from $302.0 million in the first quarter of 2010.
Internet Retailer calculates the web accounted for 10.6% of total sales compared with 8.9% in the first quarter of 2010.
“We are disappointed in our quarterly performance, however remain invigorated by the opportunities ahead,” says CEO Glenn Murphy. “We’re focused on making the necessary adjustments across the business to deliver the kind of sales we should expect from our brands.”