US retailer clears stock in HK storesLocal | 2 Jul 2020 5:14 pm
Stores of the US specialty apparel retailer Gap have begun clearance sales in Hong Kong.
The flagship in Granville Road in Tsim Sha Tsui and a store in Hysan Place, Causeway Bay, have begun clearance sales.
The company operates a portfolio of lifestyle brands, including Old Navy, Gap, Athleta and Banana Republic, reported its financial results for the first quarter of fiscal year 2020, ending May 2.
Gap closed first quarter of the fiscal year 2020 with US$1.1 billion in cash, cash equivalents, and short-term investments compared with US$1.7 billion at the beginning of the quarter.
Cash flow performance was impacted by the sales decline caused by the pandemic, partially offset by US$500 million borrowed during the quarter under the company’s unsecured revolving credit facility.
The company’s first quarter cash flow was negatively impacted by the temporary closure of its stores in the US due to the coronavirus pandemic, while still incurring the vast majority of its merchandise costs,
Global sales of Gap dived by 50 percent in the quarter. Store sales plunged by 64 percent with online sales down by 5 percen, the company said in June. Before the virus pandemic, Gap brand performance continued to be pressured by inconsistent execution of product and marketing messages, the retailer said.