Athleta, The Gap, Inc.-owned women’s active and wellness brand, generated a 1 percent increase in second-quarter sales to $344 million, with year-over-year comparable store sales declining 8 percent for the six months ended June 30. Period revenues were 37 percent higher than in Q2/2019. Despite a modest slowdown in the women’s athleisure segment, Athleta is maintaining its share in the market, according to its parent.
Second quarter softness was attributed to lukewarm consumer reaction to Athleta’s spring/summer product ranges that featured some prints and colors that didn’t resonate with customers and an ongoing preference shift away from athleisure to occasion and work-based categories.
Katrina O’Connell, CFO for The Gap, said Athleta’s issues were partially related to supply chain issues during late 2021 that caused late product deliveries and assortment imbalances.
“We are quickly pivoting and reacting to meet her (the Athleta customer) needs with performance lifestyle products while remaining true to our DNA,” commented Bobby Martin, CEO of The Gap. “That said, we continue to see a path towards delivering a mid-teens revenue CAGR over the long-term as we capitalize on the continued secular shift and growth in the health and wellness categories broadly.”
In the back half of 2022, The Gap intends to open 30 to 40 additional Athleta stores.
