GAP REPORTS HUGE Q1 LOSS ON VIRUS STORE CLOSURES

Gap Inc reported Thursday a first- quarter loss of US$932 million as the apparel retailer wrote down the value of some assets due to coronavirus-driven store closures, sending its shares down about 5 per cent. Retailers that sell non-essential goods, especially clothing, have been crushed by restrictions imposed to contain the pandemic as they were forced to restrict their businesses to online operations and curbside pickups. San Francisco- based Gap, which operates nearly 2,800 stores in North America, said 55 per cent of company-operated stores in North American were now open. chief executive Sonia Syngal said sales continued to reflect “material declines in May as a result of closures” but added online sales were improving.