As socializing made a comeback amid easing restrictions, the Gap extended its sharp bounce back. It’s betting the hot demand it saw this summer will continue, significantly jacking up its full-year forecasts for both sales and adjusted profits.
At Athleta, the women’s sports apparel brand it in 2008, sales shot up 35% over the pre-health crisis levels two years ago.
And Old Navy’s sales jumped by a fifth with help from Kanye West. Its tie-in with the rapper brought in a windfall. The majority of pre-orders for its Yeezy-Gap jacket came from new customers.
Gap’s overall sales jumped more than a quarter to over $4 billion. It was the highest second-quarter sales in over a decade.
Gap has been spending more on its digital business. On Thursday, it announced it bought Drapr, a startup that lets customers try on clothes virtually online. Gap has also been investing in air freight as it deals with delayed deliveries due to shipping congestions. Some analysts say it’s navigating supply chain challenges better than its peers, allowing it to issue a bright outlook.
Shares of the retailer rose in early trading Friday.