Gap Inc. announced an unexpected first-quarter profit, and its shares increased 16 per cent in extended trading as a result. The apparel retailer highlighted supply chain cost reductions and restructuring initiatives as reasons for the increase. After years of supply-chain hiccups, American businesses are beginning to feel some respite from exorbitant freight and production expenses. Due to reduced air freight costs and improved promotional activity, Gap’s quarterly merchandise margin climbed by 610 basis points on an adjusted basis. According to Chief Financial Officer Katrina O’Connell, inventory levels decreased 27 per cent from a year earlier.

Source: New York Times May 26, 2023 06:57 UTC