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Gap Soars After Pledging Return to Profitable Growth in 2021
- Retailer targets higher sales, margin in revitalization plan
- Company to expand sportswear, deemphasize formal attire
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Gap Inc. jumped after the retailer said it expects to return to profitable growth next year, easing investor concerns over the financial strain of the coronavirus pandemic.
Sales will expand by low- to mid-single digits annually as it tries to reach a profit margin, excluding some items, of at least 10% by 2023, the company said Thursday in an investor presentation. The targets are part of a revamp of its business, including expansion of the Old Navy and Athleta brands, reducing product assortment and rethinking its store footprint to move away from traditional shopping malls.