GAP sales slump sees profits down 50% to €831k

The Irish arm of US retail clothing giant, GAP last year sustained a slump in sales and profits halting a number of years of sales growth here.

According to new accounts filed by GAP Stores (Ireland) Ltd, the firm recorded a 50% decline in profits last year going from €1.67m to €831,194.

The firm sustained the halving of profits after its sales declined by 3% to €11.6m in the 12 months to the end of January last.

The drop in sales came in spite of the GAP’s fourth new store, at Blanchardstown, operating for the full 12 months.

The store was opened in March 2013 and followed earlier store openings at Dundrum Town Centre and Cork. GAP opened its first Irish store at Arnotts, in Dublin, in 2006.

The confirmation of the downturn in fortunes for the Irish operation follows efforts by its parent to turnaround the business in the US. T

he company announced, in July, that it intends to close 25%, or 175, of its stores in North America.

The directors of the Irish firm disclose that the firm paid a dividend of €5m to its immediate parent, GAP (UK Holdings) Ltd in September of last year.

The directors’ report states that “the level of business and the financial position at the financial year end, were satisfactory and in line with the directors’ expectations.”