1. News
August 27, 2021

Gap buys e-commerce start-up Drapr to enhance fitting experience

Gap aims to use Drapr’s technology to deliver a more personalised and inclusive fitting experience.

US-based lifestyle retailer Gap has purchased Drapr , an e-commerce start-up and technology-based online application, for an undisclosed amount.

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Drapr is designed to help shoppers find the correct clothing size and fit by allowing them to create 3D avatars and virtually try items on.

Founded by David Pastewka, Will Drevno and Richard Berwick, the company was part of Y Combinator’s class of Summer 2020.

The deal was brokered by Gap ’s Strategic Growth Office, which is led by Sally Gilligan.

Ms Gilligan said: “Fit is the number one point of friction for customers and, through their advanced 3D technology, Drapr has shown it can help shoppers efficiently find the size and fit they need.

“We plan to leverage Drapr to help Gap improve the fit experience for our customers and accelerate our ongoing digital transformation.”

Drapr co-founder and CEO David Pastewka said: “Most people either don’t know their exact measurements or are looking for a specific type of fit that numbers alone can’t tell them.

Drapr has proven effective and we are excited about the impact we can have on customers at scale as part of the Gap family.”

The acquisition comes as Gap announced its second-quarter results, with the retailer posting net sales of $4.2bn in the quarter.

This represents a 29% increase compared to the same period of last year and a 5% growth from pre-Covid levels in 2019.

The company’s second-quarter comparable sales were up by 3% year-over-year and 12% against 2019.

Its gross profit during the three-month period was $1.82bn, an increase of $267m or 17%, while its diluted earnings per share (EPS) were $0.67.

For this year, Gap anticipates its reported full-year EPS guidance to be between $1.90 and $2.05.

The company expects its sales growth for the year to be around 30% against last year.

Last month, Gap confirmed plans to permanently close all 81 of its stores in the UK and Ireland.

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What’s missing from your IPO industry assessment?

IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in. Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year. With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
  • Macroeconomic and demographic environment
  • Consumer context
  • Industry environment
  • Competitive environment
  • Route to market
Interested to learn more about what to include in your IPO Industry Assessment report? Download our free whitepaper.
by GlobalData
Enter your details here to receive your free Report.