More than 225 Gap and Banana Republic stores will close this year

• Gap Inc. is closing more than 225 Gap and Banana Republic stores this year, it said in its earnings release on Thursday.
• The company was already planning on closing a number of stores this year, but the 225 figure is larger than originally planned.
• Gap's net sales were down 28% for the quarter, while Banana Republic's net sales were down 52%.

Gap Inc. said in its quarterly earnings release on Thursday that it expects to close more than 225 Gap and Banana Republic stores globally this year, with more closures to come in 2021.

As of August 1, there were 1,643 Gap and Banana Republic stores. The 225 closures are net of new store openings. A number of these stores have already closed for good.

In total, Gap Inc. operates 3,814 store locations in 42 countries, including stores under the Gap, Banana Republic, Old Navy, Athleta, and Janie and Jack brands.

Executives said on the earnings call that since the closures are affecting the Gap and Banana Republic brands, many of the shuttering stores are located in malls.

They said the company would provide more details during a virtual investor meeting on October 22.

Gap Inc. has closed hundreds of stores over the last several years. In February 2019, it said it would close 230 Gap stores over the next two years, with about half of those closures happening that year. With Thursday's update on store closures, the company is downsizing its store fleet more than originally planned.

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%.

The Gap and Banana Republic brands struggled, however. Gap's net sales were down 28%, while Banana Republic's net sales were down 52%.

"Banana Republic continues to focus on taking action to adjust to consumer preferences and improve inventory mix as the shift to casual fashion during the stay-at-home requirements has left the brand's workwear assortment disadvantaged," the company said in its earnings release.

Gap Inc. temporarily closed all of its stores this spring in response to the coronavirus pandemic. It said Thursday that about 90% of its stores have now reopened.