Athleta, the Gap-owned retailer, which continued to face consumer pushback to certain products during the period, reported an 11 percent year-over-year decline in Q1 sales to $321 million. However, revenues were 45 percent higher than in Q1/19 before the pandemic commenced. Comparable store sales fell by 13 percent.
Athleta has product acceptance challenges that are impacting the chain’s results, Gap senior management told analysts. The parent company estimated it will take several quarters for the business to make “meaningful changes” to its assortments. In the meantime, Athleta management is working on strategies that emphasize the brand’s “performance DNA.”
While The Gap continues searching for a new senior executive for Athleta, the retailer’s business is currently being managed by key merchandising and product talent from across its portfolio of brands, including its new Chief Creative Officer, Julia Leach. There are plans in place to open 16 to 20 new Athleta stores in 2023.
