YEEZY GAP is obviously not enough to single-handedly bring a fast-fashion retailer into the black. GAP's Q1 2022 financial results have dealt a blow to its yearly projections, with underwhelming revenue and "industrywide headwinds" initiating a dip in share prices once the results were released on May 26.
In a statement, GAP CEO Sonia Syngal singled out "challenges at Old Navy" as a core factor dragging down net sales from GAP, Inc. to $3.5 billion for the first quarter of 2022 (down 13% from Q1 2021).
Online sales are down 17% and store sales by 10% compared to last year, with "slowed demand," "ongoing inventory delays," and ongoing COVID-related lockdowns in China bringing down yearly fiscal expectations down lower than they were in 2021, though GAP, Inc. will continue with its plan to open more Old Navy stores (and close GAP stores).
It's a sobering reminder to us folks fastidiously focused on the niche realm of YEEZY-dom — from where we're sitting, it seems like GAP is the biggest fast-casual player in the biz right now, what with the headline-dominating YEEZY/Balenciaga team-up (which dropping again on May 27) taking GAP leaps and bounds beyond competitors in sheer cultural relevance.
However, GAP, Inc. is a massive machine forced to satisfy many more markets beyond the streetwear set.
Certainly no one's regularly buying GAP's Athleta, Banana Republic, and Old Navy brands because of some YEEZY GAP halo effect, so it'll take much more than YEEZY to get GAP out of the red.
Only once prompted by a question from an attendee did Syngal touch on YEEZY GAP Engineered by Balenciaga, saying that GAP is looking to expand the collection in 2022. Not much to look forward to, but given the otherwise dour outlook at GAP, it's something.