The Gap-owned specialty retailer suffered a 1 percent drop in Q2 sales to $341 million for the period ended July 29, a week before Chris Blakeslee became Athleta’s new president and CEO. Comparable store sales declined 7 percent in the period, an improved trend from Q1, as sales of core performance bottoms accelerated in Q2 and outperformed total sales.
Under the leadership of Blakeslee, most recently at Alo Yoga, and the retailer’s new Chief Creative Director, Julia Leach, Athleta will continue to work on improving its product presentation, customer experience and creative as it optimizes online marketing and resets store floors in key markets to emphasize the banner’s “performance DNA,” the company said. Athleta ended Q2 with 269 doors after opening 15 new stores and closing three locations during the period.
Operating income at The Gap came in at $106 million against a loss of $28 million in Q2, with companywide gross margin improving 310 basis points to 37.6 percent from 34.5 percent. Net income was $117 million against a loss of $49 million. Total revenues declined by 8 percent year-over-year to $3,548 million from $3,857 million.
