U.S.-based global clothing retailer Gap saw a net loss in the first quarter of the year with coronavirus-related lockdowns and slowing demand in China.
The company had a net loss of $162 million for the 13 weeks ending on April 30 this year, according to its financial results statement released Thursday.
Operating loss was $197 million in the quarter, while online sales declined 17% and store sales fell 10%, compared to last year, it said.
"Growth at Gap Brand was also negatively impacted by the COVID-related forced lockdowns and slowed overall demand in China," the statement said.
As part of its 350-store closure plan, the company said it expects to close around 50 Gap and Banana Republic stores in North America this year.
Gap operates brands like Banana Republic, Old Navy, Intermix, and Athleta. It is the largest specialty retailer of private label apparel in the U.S. while coming third in the total number of international locations behind Spain's Inditex Group and Sweden's H&M.
