United States Postal Service Statement on Passage of HR 8015

Gap Inc. today announced the opening of its new Gap flagship store on West Nanjing Road in Shanghai, its biggest flagship to date in the Greater China region. Featuring Gap’s full apparel collections and latest store design elements, the new flagship store underscores the importance of the China market for the company and its commitment to better serving Chinese customers. Additionally, the company will move its China retail headquarters team into the office space being created above the store in 2018. Located at No. 863 West Nanjing Road in Shanghai’s busiest commercial district, the 1908 square-meter and two-story flagship store is Gap’s largest in Greater China. The store showcases Gap’s contemporary store concept developed jointly by the company’s local and global store design teams and takes design inspiration both from the brand’s early heritage as well as new modern elements. Click Read More below for more of the story.

Macy’s, Inc. reported results for the first quarter of 2020. As previously reported, the company had net sales of $3.017 billion. Nearly all of the company's stores have now reopened, including stores in the major metropolitan regions. Stores continued to perform ahead of expectations through May and June, and the company's digital business sales remained strong across geographies. The company continues to expect a gradual sales recovery. Primarily as a result of the COVID-19 pandemic, the company’s long-term projections and market capitalization changed, requiring interim impairment assessments for its goodwill and long-lived assets. As a result of these assessments, the company recognized pre-tax, non-cash goodwill and long-lived asset impairment charges of $3.1 billion and $80 million, respectively, during the 13 weeks ended May 2, 2020. The company is now reporting a Diluted loss per share of $11.53 and Adjusted Diluted loss per share of $2.03.

Domestic gross profit rate was 22.8% versus 24.0% last year. The gross profit rate decrease of approximately 120 basis points was primarily driven by higher supply chain costs as a result of the increased mix of online revenue and lower profit-sharing revenue from the company’s private-label and co-branded credit card arrangement. Domestic GAAP SG&A was $1.56 billion, or 17.1% of revenue, versus $1.76 billion, or 19.9% of revenue, last year. On a non-GAAP basis, SG&A was $1.54 billion, or 16.9% of revenue, versus $1.74 billion, or 19.7% of revenue, last year. Both GAAP and non-GAAP SG&A decreased primarily due to: (1) reduced store payroll expense; (2) lower advertising expense; (3) reduced incentive compensation expense, as the company did not pay or accrue short-term incentive expense for second quarter performance; and (4) lower medical claims expense. International revenue of $782 million increased 9.4% versus last year. This increase was primarily driven by comparable salesgrowth of 15.1%, which was partially offset by the impact of approximately 490 basis points of negative foreign currency exchange rates. International SG&A was $142 million, or 18.2% of revenue, versus $166 million, or 23.2% of revenue, last year. SG&A decreased primarily due to lower payroll and benefit expense, primarily in Canada, and the favorable impact of foreign exchange rates.