“India is an emerging, vibrant market and an important next step in our global expansion strategy," said Steve Sunnucks, president of Gap's worldwide operations.
Ismail Seyis, vice president of Gap Global Franchise, said in the statement: “More than half of India’s population is under 25 and they are actively embracing fashion in today’s retail environment,” adding that its first stores in India will open in Mumbai and Delhi, in partnership with a subsidiary of Indian textile manufacturer Arvind Limited.
For the second quarter, Gap reported that sales at its stores around the world were flat, against a 5 percent increase in the same quarter last year. The performance also reflected flat sales at Banana Republic and a growth of 4 percent at Old Navy -- two of its key subsidiaries. For the fiscal year ending February 2015, the company raised its full-year profit forecast to $3 a share to reflect gains on asset sales.
The company also said that it will continue to expand its store base in China and Japan, and announced plans to open 110 stores across mainland China and 40 stores in Japan by the end of the current fiscal year.