Has Gap Finally Found Its Footing?

Gap (NYSE: GPS) managed to generate an unusual financial metric in the second quarter (which ended Aug. 1) when it announced a strong comparable store sales increase despite decreased overall sales. It also helped that the retailer's 18% sales drop was much milder than drops reported by other apparel and lifestyle retailers in their comparable quarters, including TJX Companies (down 32%), Nordstrom (down 53%), and American Eagle Outfitters (Q1 down 38%).

The 13% quarterly comps increase was fueled by strong digital demand, suggesting Gap was prepared to deal with the coronavirus pandemic and could put its efficient e-commerce program to the test. The struggling casual apparel chain enacted several tough changes leading up to the pandemic that helped turn around falling sales and the efforts paid off while customers clicked to buy.

As stores reopen, Gap is in a make-or-break moment. Will the progress last?

Source Fool.com