Shares of US apparel retailer Gap lost 24.12% on Wednesday to $ 17.84 apiece on Wall Street, a day after it released a lower-than-expected third-quarter 2021 earnings report from analysts.
Gap announced a net loss in the third quarter of 152 million dollars, as a result of the problems in the supply chain. In the same period of the previous year, it obtained net income of 95 million dollars.
In the third quarter ended on October 30, its net sales were 3,940 million dollars, a decrease of 1.3% compared to the 3,990 million in the same period of 2020 and 1.4% compared to 4,000 million in the third quarter of 2019, the last third quarter before the company felt the impact of the pandemic.
Its Old Navy brand was affected by supply chain disruptions, especially in the women’s offering. This caused the brand’s comparable sales to drop 9% year-on-year, although they were up 6% compared to the third quarter of 2019.
For its part, Gap, its flagship brand, registered a 7% year-on-year increase in comparable sales and an increase of 3% compared to the third quarter of 2019, while Banana Republic saw its comparables grow 28% in compared to the third quarter of 2020 and fell 10% compared to two years ago.