Gap to close 75 stores outside North America, including all 53 Old Navy stores in Japan

[yuiyoshida]

NEW YORK —

Gap Inc said Thursday that it is shuttering 75 Old Navy and Banana Republic stores outside North America as the struggling company looks to focus on regions where it sees it has the greatest potential for success.

The closures include all 53 Old Navy stores in Japan, Gap said.

The closures represent just a fraction of the over 3,700 stores it operates globally. But the San Francisco-based retailer says it should save it about $275 million a year before taxes.

Gap also indicated it might not meet its earlier profit forecast for the year, noting the clothing business would need to improve in order to achieve that goal.

The announcement came as Gap reported a 47 percent drop in first-quarter profits, with revenue falling nearly 6 percent. All three brands — Gap, Old Navy and Banana Republic — suffered declines in a key sales measure.

http://www.japantoday.com/category/business/view/gap-to-close-75-stores-outside-north-america-including-53-old-navy-stores-in-japan

[jberryhill]

1. With rising China tensions, it seems odd to be shutting that many Old Navy bases in Japan

[Brother Buzz]

2. DUzy material!