Gap reported third-quarter earnings on Thursday with results widely viewed as disappointing for investors. The company reported revenue of $3.94 billion far below analyst expectations of 4.43 billion. With the exception of the company’s Athleta division, same-store sales for Gap, Banana Republic and Old Navy were viewed as disappointing, causing the stock to plummet almost 21 percent.
Weirdly, while retailers like Walmart and Target recently reported they had largely maneuvered around supply chain issues, Gap blame some of it shortfalls on not being able to deliver merchandise to stores because of delays caused by bottlenecks.
If there was any happy news to be had, it was that Gap’s YEEZY hoodie launch went phenomenally well. According to a press release on the quarter, the $90 hoodie was responsible for the “most sales in a single day in Gap history with 70 percent of customers new to the brand.”
On the call, Gap went went on to describe YEEZY as opening the door to a new customer. That may be true, but unless YEEZY is introduced in physical stores or at least launched with more predictability online, that connection will remain tenuous at best.