Gap pivoted to masks and ended up selling $130 million worth of them
- Gap Inc. said Thursday that it sold $130 million worth of masks in the most recent quarter.
- It started selling masks in the spring as the industry dealt with the impact of temporary store closures.
- The move clearly paid off for the company.
Back in the spring, as the retail industry reeled from the temporary closure of businesses deemed "nonessential," some apparel stores pivoted to making and selling masks.
That move has paid off for Gap Inc.
In its earnings call on Thursday, Gap said it sold $130 million worth of masks in the second quarter.
"The work the team has done to straighten up this business, creating brand right designs that our customers love, continually improving them and scaling the business is the ultimate example of how we want to operate as a culture, chasing big audacious idea with speed and clarity, all with the customer at the heart of our decision," CEO Sonia Syngal said.
Packs of face masks are being sold online at Gap, Old Navy, Banana Republic, Athleta, and Janie and Jack. They're also being sold to businesses.
Early on in the pandemic, masks were difficult to come by. And now that face coverings are required in more places, masks are very much in demand.
Syngal said the mask launch was a success due to "compelling" consumer marketing and an "aggressive" B2B effort that counts Kaiser Permanente, the state of California, and the city of New York as clients. Syngal added that the company ranks first for "facemask style guide" in Google search results.
Gap Inc. reported a 13% comparable sales increase for the quarter. Net sales were down 18% while online sales grew by 95%. Athleta was a bright spot for the company, with net sales up 6% and comparable sales up 19%.