February 24, 2012, 3:51 PM

Gap’s web sales grow 20% in 2011

Web sales comprise nearly 11% of total sales for the e-retailer.

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Gap Inc. total sales declined 1.3% during its fiscal 2011, but e-commerce sales for the apparel retailer rose 20.0% from a year ago.

For the 2011 fiscal year ended Jan. 28, Gap, No. 24 in the Internet Retailer Top 500 Guide, reported:

  • Web sales increased year over year 20.0% to $1.56 billion, up from $1.30 billion.
  • Total sales declined 0.8% to $14.55 billion from $14.67 billion.
  • Comparable-store sales decreased 4%.
  • Net income declined 30.8% to $833 million from $1.20 billion.

The web accounted for 10.7% of total sales in 2011 compared with 8.9% in 2010. Gap further broke down where its web sales came from:

  • International sales accounted for 8.1% of web sales, approximately $127 million. The international e-retail total is up 202% from $42 million in fiscal 2010. Gap Inc. began making its international push in August 2010.
  • Canada comprised $89 million in sales; Europe $38 million.

“In spite of our 2011 earnings being below last year, we’re pleased with the progress we made against our long-term strategic plan, including growing our online business and expanding internationally,” said Glenn Murphy, Gap chairman and CEO, in announcing the fiscal results. The company says it plans for online and international sales (including stores) to account for 30% of net sales by the end of 2013. In 2011, these divisions accounted for 26% of sales.

For the fourth quarter ended Jan. 28, Gap reported:

  • Web sales increased year over year 21.0% to $489 million from $404 million.
  • Total sales declined 1.8% to $4.28 billion from $4.36 billion.
  • Comparable-store sales decreased 4%.
  • Net income declined 40.3% to $218 million from $365 million.

The web accounted for 10.7% I GET 11.4% of total sales in the fourth quarter compared with 8.9% I GET 9.3% in the prior year. Gap further broke down where its web sales came from during the fourth quarter.

  • International sales accounted for 8.8% of web sales, approximately $43 million, up 43.3% from $30 million in Q4 2010.
  • Canada comprised $31 million in sales; Europe $12 million.
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