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On Thursday, Gap Inc. (GPS.N) recorded its first-quarter loss of nearly $1 billion as the retail clothing company was forced to shut its stores due to the coronavirus pandemic. Gap’s shares were down by 8% after the extended session.
According to IBES data from Refinitiv, analysts had forecast a loss of 67 cents per share and revenue of $2.30 billion from Gap Inc.
“While our economics in our Old Navy and Athleta fleets are strong, our specialty store fleet (Gap and Banana Republic) has not been as profitable as we need it to be,” Gap’s Chief Financial Officer Katrina O’Connell said in a conference call with analysts.
According to a statement from the Gap’s President and Chief Executive Officer Sonia Syngal, the retailer company has reopened its 1,500 stores in North America and plans to reopen the majority of its locations in the region during this month.
Gap’s net sales were down by 43%, to $2.11 billion from $3.71 billion, after three months of store closures.
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