The US Outbreak Is Urgent: GAP'S Net Profit Fell 65% Last Year.

GAP has nearly 4000 stores in the world, and more than 70% of them are in North America, contributing nearly 80% of their revenues. The outbreak of the US epidemic is urgent. Since March 16th, GAP has temporarily shortened the business hours of all stores in the United States and Canada, closing more than 100 stores in the most serious areas.

The two largest markets in Asia and Europe account for only 10% of GAP's revenues. Sonia Syngal, chief executive of GAP group, is expected to lose about $100 million in the first quarter of 2020, affected by the epidemic. "If the situation worsens, then the situation may be even worse."

In order to save its performance, Gap group is restructuring its structure. The outbreak is just like adding insult to injury. In the 2019 fiscal year, GAP group's sales fell 1% to $16 billion 400 million, and net profit fell 65% to $351 million over the same period. To alleviate cost pressures, the company originally planned to close about 170 GAP brand stores around the world in 2020.