**Gap’s Sales Fall Short, Underscoring New CEO’s Challenge**
**New York -** Gap Inc. reported a wider-than-expected loss and sales that fell short of estimates in the first quarter, as the apparel retailer continues to grapple with supply chain issues and a shift in consumer preferences.
The net loss was $162 million, or 43 cents per share, in the quarter ended April 30, compared with a loss of $16 million, or 4 cents per share, a year earlier. Analysts had expected a loss of 21 cents per share, according to Refinitiv data.
Net sales fell 13% to $3.48 billion, below analysts’ estimates of $3.76 billion.
Comparable sales fell 10% in the quarter, driven by declines across all of the company’s brands, including Gap, Old Navy, and Banana Republic.
The results come as Gap is in the midst of a turnaround plan led by new CEO Sonia Syngal. Syngal, who took over in March, has been tasked with improving the company’s profitability and sales growth.
Gap has been struggling in recent years as it has faced competition from fast-fashion retailers such as H&M and Zara, as well as online retailers such as Amazon.
The company has also been hurt by the COVID-19 pandemic, which has led to store closures and a decline in consumer spending.
Syngal has said that she is focused on improving the company’s product offerings, marketing, and customer experience.
She is also working to reduce the company’s costs and improve its supply chain.
Analysts say that Syngal has a tough job ahead of her, but that she is a talented executive with a proven track record.
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