Today, Gap said that it is planning to shut down approximately 230 Gap specialty stores over the next two years. The announcement comes as the company attempts to restructure its business.
The retailer said that it is planning to split into two independent publicly traded firms, Old Navy and firm that is yet-to-be named, which will include its Gap brand, Banana Republic, Athleta, Hill City, and Intermix.
The announcement came as the firm reported disappointing sales for the holiday quarter. However, its earnings surpassed earlir estimates.
In the latest period that ended February 2, Gap said that the net income of the company increased to $276 million, or 72 cents per share, from $205 million, or 52 cents per share, that was recorded a year ago. The profits were higher as compared to the 68 cents per share that the analysts that were surveyed by Refinitiv were anticipating.
The sales of the company dropped to $4.62 billion from $4.78 billion a year ago. However, it was higher as compared to the $4.69 billion that the analysts expected.