Gap had a difficult second quarter. The coronavirus pandemic forced it to close its doors, sending total sales across its major brands (Gap, Old Navy, Athleta, and Banana Republic) down 18%. However, online sales saw a big uptick of 95%. Gap also sold $130 million worth of face masks. It even more than doubled its cash on hand in the second quarter as it prepared to ride out the wave of store closings. But all this was not enough to change Thursday's announcement, in which the retailer said that Gap and Banana Republic would permanently close more than 225 stores this year – far more than the 90 locations slated for closure in March.
The "lion's share of closures" will be in malls, Chief Financial Officer Katrina O'Connell said in an earnings call Thursday.