Gap to test 'fast fashion' in some stores
With another difficult fiscal quarter under its belt, the CEO of Gap Inc. says the retailer will begin testing fast fashion merchandise in select stores.
CEO Art Peck says the company was trying to build this capability as quickly as it can.
Gap Inc. experienced increases in cost of goods sold and operating expenses as sales fell during a difficult second quarter of fiscal 2015, resulting in substantial profit decline.
Gap reported net income of $219 million, down 51% from $332 million in the same quarter the prior fiscal year.
In one good piece of profit news, Gap did meet Wall Street expectations for net income. Foreign currency fluctuations helped reduce net sales 2% to $3.9 billion from $3.98 billion. Same-store sales fell 6% at Gap and 4% at Banana Republic, but rose 3% at Old Navy.
“I remain confident in our strategies to improve business performance and drive loyalty going forward,” said Art Peck, CEO, Gap Inc. “Our evolving product operating model is laying the foundation to more consistently deliver on-trend product collections across our portfolio.”