In its second-largest acquisition, Amazon buys the company for $970 million.
The chain says it will open an Old Navy e-retail site in China.
E-commerce helped Gap Inc. grow second quarter sales, accounting for 34.1% of total revenue growth.
For the second quarter ended Aug. 3, Gap reported:
- E-commerce sales were $466 million, up by 27% from $367 million in the second quarter of 2012. Gap attributed the web sales increase to its “omnichannel platform for consumers, inclusive of ship-from-store, find-in-store and reserve-in-store capabilities.” Omnichannel retailing describes the ability of consumers to shop across multiple retail channels, including e-commerce, stores and mobile commerce.
- Total sales of $3.87 billion, an 8% increase from $3.58 billion.
- Comparable-store sales increased by 5%.
- Net income of $303 million, up by 25% compared with net income of $243 million in the second quarter last year.
The web accounted for 12.0% of total sales for the quarter, compared with 10.3% in the same period last year.
In keeping with its strategy to expand Old Navy internationally, Gap said yesterday it plans to open the brand's first store in Shanghai and launch an Old Navy e-commerce site in China in the first half of 2014. The retailer ended the quarter with 10 Old Navy stores in Japan, on pace to open 15 to 20 stores for the year, it said.
Gap continued to expand its Gap store base in mainland China in the second quarter, opening six stores, for a total of 55. The company also said it plans to bring its Gap brand to Taiwan with its first store opening in the first half of 2014, along with a Gap e-commerce site.
For the six months ended Aug. 3, Gap reported:
- Combined first and second quarter online sales, based on quarterly filings with the U.S. Securities and Exchange Commission, of $975 million, a 26.8% increase from $769 million in the first half of 2012.
- Total sales of $7.60 billion, up by 7.6% from $7.06 billion.
- Net income of $636 million, a 33.6% increase from $476 million.
E-commerce accounted for 12.8% of total sales in the first half of 2013, compared with 10.9% in the same period of 2012.
Gap Inc. Direct, the retailer’s e-commerce unit, is No. 19 in Internet Retailer’s 2013 Top 500 Guide.