In its second-largest acquisition, Amazon buys the company for $970 million.
International e-commerce sales increase 29% for the apparel chain.
Online and total sales increased again for clothing retail chain Gap Inc. in the third quarter. But with the online channel growing faster than store sales, the web accounted for 35% of Gap’s sales growth in the quarter.
For the period ending Oct. 27, Gap, No. 22 in the Internet Retailer Top 500 Guide reported:
- Global online sales of $509 million, a 22.9% increase compared with $414 million in the third quarter of last year.
- International e-commerce sales increased 29.4% to $44 million ($33 million in Canada and $11 million in Europe) from $34 million ($24 million in Canada and $10 million in Europe). That means North American online sales increased 22.4% to $465 million from $380 million in the prior-year quarter.
- Total sales grew 7.5% to $3.86 billion from $3.59 billion last year. The online sales growth of $95 million, presented 35.2% of Gap’s $270 million revenue increase in the quarter.
- Comparable-store sales increased 6%.
- Net income increased 59.6% to $308 million compared with $193 million.
E-commerce sales accounted for 13.2% of total revenue during the quarter, compared with 11.5% last year. Gap did not disclose sales from its two e-commerce sites in Japan, which the retailer launched last month.
“We're very pleased with our strong third quarter financial performance, highlighted by how well customers have responded to our product,” says CEO Glenn Murphy. “We are ready to compete and win this holiday season as we drive to build upon our top-line growth.”
For the first three quarters of the fiscal year Gap also reported:
- E-commerce sales of $1.31 billion, a 22.4% increase compared with $1.07 billion in the first three quarters of 2011.
- Net sales grew 6.3% to $10.92 billion from $10.27 billion last year. That means the web has accounted for 37% of Gap’s sales growth this fiscal year.
- Net income was $784 million, a 27.5% increase compared with $615 million in 2011.
The web accounted for 12.0% of total sales in the first three quarters of the year, compared with 10.4% in 2011.