Gap Inc. to Close Smallest Brand, Piperlime
Decision allows company to remain focused on its top priorities
SAN FRANCISCO – January 23, 2015 – Gap Inc. (NYSE: GPS) today announced the decision to close its Piperlime brand, including the online platform and single store in New York, by the end of the first quarter of fiscal year 2015.
The company is committed to executing against its long-term strategy of driving profitable top line sales, powered by its global brands and innovative ability to reach customers in new and differentiated ways. Going into the new fiscal year, the company will focus on its portfolio of five brands – Gap, Old Navy, Banana Republic, Athleta and Intermix, as well as digital and global growth.
“We are incredibly grateful to our fashion-focused, loyal customers, and proud of our dedicated employees who have been working hard to evolve the brand and test out new ideas,” said incoming CEO Art Peck. “We plan to keep on pushing new ideas and look forward to seeing how we can apply what we’ve learned to the rest of the company as we continue to bring great products and shopping experiences to our customers.”
While Gap Inc. does not break out Piperlime’s sales independently, the brand is by far the smallest of the company’s portfolio with yearly revenue below $100 million, representing less than 1 percent of Gap Inc.’s total revenue base of over $16 billion. The wind-down costs associated with the decision are not material to the company’s financials.
The company will report January sales and plans to provide quarterly earnings guidance for the fourth quarter 2014 at 1:00 p.m. Pacific Time on Monday, February 9, 2015.
About Gap Inc.
Gap Inc. is a leading global retailer offering clothing, accessories, and personal care products for men, women, and children under the Gap, Banana Republic, Old Navy, Piperlime, Athleta, and Intermix brands. Fiscal year 2013 net sales were $16.1 billion. Gap Inc. products are available for purchase in more than 90 countries worldwide through about 3,200 company-operated stores, over 400 franchise stores, and e-commerce sites. For more information, please visit www.gapinc.com.