Gap Inc raised its forecast for annual sales and profit, expecting an unabated surge in demand for new apparel as more people begin to step out and socialize after a year of hunkering down at home due to the pandemic.
Apparel retailer Gap reported a surprise 13% rise in quarterly comparable sales on Thursday, as consumers stuck at home due to the COVID-19 pandemic bought more of its Old Navy and Athleta clothing online.
Each company said it will work to maintain store safety by upholding safety measures like physical distancing, ramping up cleaning and sanitizing practices, and requiring employees to wear protective gear.
Gap Inc. announced on Monday that it was extending its store closures, forcing the company to furlough the majority of its store teams in the United States and Canada, as well as head office employees globally.
Gap Inc on Thursday withdrew its full-year forecast issued two weeks ago, suspended its dividend and said it will draw down on its $500 million credit facility as the retailer looks to weather the coronavirus crisis.