Third quarter net sales at Athleta rose by 4 percent year-over-year to $290 million as comparable sales increased by 5 percent for the period ended Nov. 2. As expected by parent Gap Inc., the segment’s return to positive comparable sales was attributed to new products and marketing resonating with customers. Core bottoms and limited-edition drops, which are being increased in Q4, were the strongest products during the period.
Gap Inc. CEO Richard Dickson told analysts that work still needs to be done to increase traffic in Athleta locations, but that the segment continues to build up its customer base through a new marketing methodology and media mix model. That strategy has resulted in attracting “new, higher-value customers” to the brand and its retail locations. Athleta, which has been one of the fastest-growing sportswear retailers on TikTok since its launch on the platform in February, is refreshing its look and presentation in 40+ stores.
“In Q4, we really believe we have a much stronger product and visual presentation (at Athleta),” commented Dickson. “We’re expanding the distribution of the limited edition drops…and we’re, of course, advancing and implementing innovative media strategies that are driving the speed of the culture.”
