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March 4, 2022updated 28 Jul 2022 10:59am

Gap registers 21% increase in full-year net sales for FY21

The company has forecast its FY22 revenue to grow in the low single-digit range.

US-based clothing and accessory retailer Gap has reported $16.7bn in net sales for the fiscal year 2021 (FY21), representing a 21% growth from FY20 and 2% from FY19.

The company’s comparable sales also grew by 6% from last year and 8% compared with 2019.

Gap’s digital sales for FY21 grew by 57% compared with two years earlier, representing 39% of its total net sales.

The retailer’s diluted earnings per share (EPS) were $0.67, while its adjusted EPS were $1.44.

During the fourth quarter (Q4), which ended on 29 January, Gap’s net sales increased by 2% to $4.5bn but were down by 3% compared with 2019.

The company’s comparable sales for the quarter rose by 3% compared to the same period of last year and were up 3% from 2019.

Its digital sales for Q4 also grew by 44% against two years prior, representing 43% of its total business.

Gap’s operating margin for the quarter was 0.2% on a reported basis, while its adjusted operating margin was 0.4%.

The retailer expects its revenue for FY22 to grow in the low single-digit range against FY21 and its diluted EPS to be between $1.95 and $2.15.

Gap executive vice-president and CFO Katrina O’Connell said: “As we transition to 2022, we are focused on delivering value to shareholders through our economic model, enabled by the progress we’ve made against our strategy through repositioning unprofitable areas of the business and building brand relevance.

“Our primary focus is on the long-term health of the business and delivering profitable growth year after year.

“We are clear on our 2022 priorities and are acutely focused on realising increased operational efficiency and, most importantly, driving sustainable, profitable growth.”

Gap ended FY21 with 3,399 store locations across more than 40 countries.

In October last year, the retailer purchased artificial intelligence (AI) start-up Context-Based 4 Casting.