Gap Inc. (NYSE: GPS) today announced that, while eager to reopen
its company-operated North American and European stores, the
company anticipates the closures to extend past the previously
announced April 1 date, as a result of continued measures to help
slow the spread of COVID-19.
As part of this decision, the company will furlough the majority
of its store teams in the United States and Canada, pausing pay but
continuing to offer applicable benefits until stores are able to
reopen. The company has also made the proactive decision to reduce
headcount across its corporate functions around the world. In
addition, the entire Gap Inc. leadership team along with the Board
of Directors will take a temporary reduction in pay.
“After taking the extraordinary measures of temporarily closing
all of our company-owned stores in North America and Europe two
weeks ago, we are now in a position where we must take deeper
actions. Each decision, however difficult, has been made to ensure
that we build toward a future where Gap Inc. can come out of this
stronger – for our customers, our shareholders and, most
importantly, our teams,” said Sonia Syngal, President and CEO, Gap
Inc. “We know that tens of thousands of people rely on us to
support themselves and their families, and that millions more
around the world rely on our business. We are doing everything we
can to provide support during this time, and we are intensely
focused on welcoming back our store teams and customers as soon as
we are able.”
To support its impacted employees, particularly its store teams,
Gap Inc. has set up an Employee Resource Center, including
resources to identify and apply for temporary roles at other
retailers that remain open and hiring. Details are available here:
http://jobs.gapinc.com/employeeresourcecenter.
All of the portfolio’s brands continue to be available for
customers through e-commerce channels: www.oldnavy.com,
www.gap.com, www.gapfactory.com, www.bananarepublic.com,
www.bananarepublicfactory.com, www.athleta.com,
www.janieandjack.com, www.hillcity.com and
www.intermixonline.com.
As previously disclosed on March 26, 2020, the company announced
a number of actions to strengthen financial flexibility in response
to the rapidly evolving impact of the COVID-19 pandemic. The
company believes these actions along with the decisions announced
today will support the company in navigating through the
unprecedented level of uncertainty and disruption currently
experienced by the retail sector.
To follow the latest news from Gap Inc., visit
https://corporate.gapinc.com/en-us/news.
About Gap Inc.
Gap Inc. is a leading global retailer offering clothing,
accessories, and personal care products for men, women, and
children under the Old Navy, Gap, Banana Republic, Athleta,
Intermix, Janie and Jack, and Hill City brands. Fiscal year 2019
net sales were $16.4 billion. Gap Inc. products are available for
purchase in more than 90 countries worldwide through
company-operated stores, franchise stores, and e-commerce sites.
For more information, please visit
www.gapinc.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. All statements other than those that are purely
historical are forward-looking statements. Words such as "expect,"
"anticipate," "believe," "estimate," "intend," "plan," and similar
expressions also identify forward-looking statements.
Forward-looking statements include, without limitation, statements
relating to the duration of store closures as a result of COVID-19;
the furlough of the majority of its store teams in the United
States and Canada, and pausing pay while continuing to offer
applicable benefits until stores are able to reopen; reduction in
headcount across its corporate functions around the world;
temporary reduction in pay for the entire Gap Inc. leadership team,
as well as the Board of Directors; reducing capital expenditures;
and duration and impact of COVID-19 on our business plans,
objectives and expected operating results.
Because these forward-looking statements involve risks and
uncertainties, there are important factors that could cause the
company’s actual results to differ materially from those in the
forward-looking statements. These factors include, without
limitation, the following risks, any of which could have an adverse
effect on the company’s financial condition, results of operations,
and reputation: the risk that the company or its franchisees will
be unsuccessful in gauging apparel trends and changing consumer
preferences; the highly competitive nature of the company’s
business in the United States and internationally; the risks
associated with engaging in or seeking to engage in strategic
transactions; the risk of failure to maintain, enhance and protect
the company’s brand image; the risk of failure to manage key
executive succession and retention and to continue to attract
qualified personnel; the risk that the company’s investments in
customer, digital, and omni-channel shopping initiatives may not
deliver the results the company anticipates; the risk if the
company is unable to manage its inventory effectively; the risks to
the company’s business, including its costs and supply chain,
associated with global sourcing and manufacturing; the risk that
the company is subject to data or other security breaches that may
result in increased costs, violations of law, significant legal and
financial exposure, and a loss of confidence in the company’s
security measures; the risk that a failure of, or updates or
changes to, the company’s information technology systems may
disrupt its operations; the risk of changes in global economic
conditions or consumer spending patterns; the risks to the
company’s efforts to expand internationally, including its ability
to operate in regions where it has less experience; the risk that
the company or its franchisees will be unsuccessful in identifying,
negotiating, and securing new store locations and renewing,
modifying, or terminating leases for existing store locations
effectively; the risks to the company’s reputation or operations
associated with importing merchandise from foreign countries,
including failure of the company’s vendors to adhere to its Code of
Vendor Conduct; the risk that the company’s franchisees’ operation
of franchise stores is not directly within the company’s control
and could impair the value of its brands; the risk that trade
matters could increase the cost or reduce the supply of apparel
available to the company; the risk of foreign currency exchange
rate fluctuations; the risk that comparable sales and margins will
experience fluctuations; the risk that changes in the company’s
credit profile or deterioration in market conditions may limit the
company’s access to the capital markets; the risk of changes in the
regulatory or administrative landscape; the risk of natural
disasters, public health crises, political crises, negative global
climate patterns, or other catastrophic events; the risk of
reductions in income and cash flow from the company’s credit card
arrangement related to its private label and co-branded credit
cards; the risk that the adoption of new accounting pronouncements
will impact future results; and the risk that the company will not
be successful in defending various proceedings, lawsuits, disputes,
and claims.
Additional information regarding these factors that could cause
results to differ can be found in the company’s Annual Report on
Form 10-K for the fiscal year ended February 1, 2020, as well as
the company’s subsequent filings with the Securities and Exchange
Commission.
These forward-looking statements are based on information as of
March 30, 2020. The company assumes no obligation to publicly
update or revise its forward-looking statements even if experience
or future changes make it clear that any projected results
expressed or implied therein will not be realized.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200330005686/en/
Media Contact: Sandy Goldberg press@gap.com
Investor Relations: Tina Romani
Investor_relations@gap.com
Gap (NYSE:GPS)
Historical Stock Chart
From Jun 2024 to Jul 2024
Gap (NYSE:GPS)
Historical Stock Chart
From Jul 2023 to Jul 2024