Gap Inc. Sold $130 Million Worth of Face Masks During Q2
Gap Inc.’s decision to go all in on the face mask business proved to be a lucrative business move.
Although the company’s total sales fell about 18% in the second quarter, the company revealed that it sold $130 million worth of face masks, thanks to its high search ranking on Google and clever marketing.
“The work the team has done to straighten up this business, creating brand right designs that our customers love, continually improving them and scaling the business is the ultimate example of how we want to operate as a culture, chasing big audacious idea with speed and clarity, all with the customer at the heart of our decisions,” said Sonia Syngal, Gap’s CEO, president and director, in a conference call.
The face masks are sold to both individuals and bulk customers, which include the city of New York, the state of California and Kaiser Permanente. The San Francisco-based company began selling their face masks at the end of May when it reopened 800 of its owned outposts including Old Navy, Banana Republic and Athleta.
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Gap’s cloth face masks are sold in packs of three for $18 and come in multiple different graphics and patterns. Made of triple-layer cotton, the face masks contour to the shape of your face and have adjustable ear straps and adjustable nose pieces.
For the three months ended Aug. 1, the company posted a loss of 17 cents per share and an 18% drop in revenues to $3.28 billion. Both figures, however, were still better than analysts’ forecasts of a loss of 41 cents and revenues of $2.91 billion.
Gap said online sales increased 95%, offset by a 48% decline in physical store sales, which was impacted by partial closures during the quarter. What’s more, comps were up 13% as Gap’s e-commerce business added more than 3.5 million new customers during the quarter.
