Gap shares tumbled in following-hours investing Thursday as the troubled retailer reported a coronavirus-related decline that was worse than expected.

For the first quarter, Gap swung to a internet decline of $932 million, or $2.51 per share, from with a income of $227 million, or sixty cents a share, a yr back. Web income dropped forty three% to $2.11 billion, reflecting the short term closure of somewhere around ninety% of Gap’s global store fleet amid the pandemic.

Much more than one,500 of its shops have now reopened and the business said it “had leveraged its omni abilities to go on to serve client demand from customers on-line through its scaled e-commerce system.”

On line income enhanced thirteen% yr-above-yr in the quarter finished May possibly 2 and by 100% yr-above-yr last thirty day period.

“This on-line momentum, enabled by new omni-abilities that have expanded the way consumers can store with us, leaves us nicely-positioned to gasoline our models likely ahead,” CEO Sonia Syngal said in a news launch.

But in the extended session, Gap shares fell 5.5% to $11.47. Analysts had expected a decline of sixty cents per share on revenue of $2.35 billion.

As Barron’s experiences, “Gap is rarely the only attire retailer emotion the warmth, but the business had been struggling even just before the pandemic.” Its shares are down more than 31% for the yr even while they bought a increase following it scrapped its strategy to spin off its Old Navy brand.

Considering that April, Gap has stopped having to pay rent at all store spots influenced by necessary closures for the duration of the pandemic. Simon Residence Group, the greatest shopping mall operator in the place, has sued the business for $sixty nine.5 million in unpaid rent across more than 400 attributes.

“We are in lively and ongoing negotiations with our landlords to work through this disaster jointly,” Gap CFO Katrina O’Connell said Thursday. “We worth these relationships and are committed to acquiring mutually agreeable alternatives that will permit both of those of us to profit from an aligned strategic strategy.”

Between the 4 Gap models, internet income fell 42% at Old Navy in the first quarter, 50% at Gap, 47% at Banana Republic, and 8% at Athleta.

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earnings, ecommerce, Gap, Katrina O’Connell, Old Navy, retailer, Sonia Syngal