Gap Inc. Business Update as a Result of Coronavirus

Gap Inc. (NYSE: GPS) today announced that, while eager to reopen its company-operated North American and European stores, the company anticipates the closures to extend past the previously announced April 1 date, as a result of continued measures to help slow the spread of COVID-19.

As part of this decision, the company will furlough the majority of its store teams in the United States and Canada, pausing pay but continuing to offer applicable benefits until stores are able to reopen. The company has also made the proactive decision to reduce headcount across its corporate functions around the world. In addition, the entire Gap Inc. leadership team along with the Board of Directors will take a temporary reduction in pay.

“After taking the extraordinary measures of temporarily closing all of our company-owned stores in North America and Europe two weeks ago, we are now in a position where we must take deeper actions. Each decision, however difficult, has been made to ensure that we build toward a future where Gap Inc. can come out of this stronger – for our customers, our shareholders and, most importantly, our teams,” said Sonia Syngal, President and CEO, Gap Inc. “We know that tens of thousands of people rely on us to support themselves and their families, and that millions more around the world rely on our business. We are doing everything we can to provide support during this time, and we are intensely focused on welcoming back our store teams and customers as soon as we are able.”

To support its impacted employees, particularly its store teams, Gap Inc. has set up an Employee Resource Center, including resources to identify and apply for temporary roles at other retailers that remain open and hiring. Details are available here: http://jobs.gapinc.com/employeeresourcecenter.

All of the portfolio’s brands continue to be available for customers through e-commerce channels: www.oldnavy.com, www.gap.com, www.gapfactory.com, www.bananarepublic.com, www.bananarepublicfactory.com, www.athleta.com, www.janieandjack.com, www.hillcity.com and www.intermixonline.com.

As previously disclosed on March 26, 2020, the company announced a number of actions to strengthen financial flexibility in response to the rapidly evolving impact of the COVID-19 pandemic. The company believes these actions along with the decisions announced today will support the company in navigating through the unprecedented level of uncertainty and disruption currently experienced by the retail sector.