Athleta Announces Entry Into Canada

Brand will launch e-commerce and open two stores to advance towards its goal of doubling the business by 2023

Today, Gap Inc. (NYSE: GPS) brand Athleta, announced it will enter Canada later this year, marking the performance lifestyle brand’s first company owned expansion outside the United States. Athleta plans to launch e-commerce late this summer followed by opening retail stores at Yorkdale Shopping Center in North York, Ontario and Park Royal Shopping Centre in West Vancouver, British Columbia in fall 2021.

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Rendering of upcoming Athleta store in Canada; Athleta announced it will launch e-commerce and open two stores in Canada, marking the performance lifestyle brand’s first company-owned expansion outside the United States. (Graphic: Business Wire)

The brand plans to open between 20 and 30 stores a year, adding to its existing profitable fleet of over 200 stores across the United States. Athleta stores remain top customer acquisition and brand awareness vehicles and are a key component of the growth and future of the brand. New entry points, including wholesale partnerships and international expansion through franchise and company operated stores, are strategic steps towards growing the brand to two billion dollars in net sales by 2023. In 2020, Athleta surpassed one billion dollars in net sales and had 16% annual sales growth.

“International expansion is a key component of our growth strategy to reach two billion dollars in net sales by 2023, and we are very proud to introduce Athleta to customers in Canada,” said Mary Beth Laughton, President and CEO, Athleta. “As a purpose-driven brand, we are excited to expand our community of empowered and confident women and girls to Canada and bring them a differentiated and inclusive offering in the performance lifestyle category.”

Athleta will also launch an e-commerce site in Canada, making its assortment of sustainable, inclusive, versatile product available to all Canadian consumers. Product will be fulfilled by the Gap Inc. Distribution Center in Brampton, Ontario, eliminating international taxes and lengthy shipping times for Canada-based consumers. E-commerce in Canada is fast-growing, and the pandemic further accelerated the channel’s growth. Additionally, Athleta experienced double-digit online growth in the U.S. last year, and 60% percent of the business was generated from e-commerce.

As a customer-led brand, Athleta conducted extensive research to understand the behaviors of the Canadian consumer. The findings support customer demand for a purpose-driven performance lifestyle brand. Athleta's differentiated brand focus on wellness, sustainability and inclusivity coupled with versatile product will resonate across geographies into the Canadian market.

Athleta is a purpose-driven company with a mission of empowering a community of active women and girls. Inclusivity is core to Athleta’s brand DNA and in turn, it will bring a differentiated product offering to the Canadian market including extended sizing in approximately 500 styles in stores and online.

Athleta believes in using business as a force for good and became a certified B Corp in 2018. The brand will join the over 230 certified B Corp businesses operating in Canada. Today, over 70% of Athleta product is made from sustainable materials.

For more information on Athleta, please visit www.athleta.com and www.gapinc.com, or athleta.ca/comingsoon.

Forward-Looking Statements

This press release contains forward-looking statements within the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. All statements other than those that are purely historical are forward-looking statements. Words such as “expect,” “anticipate,” “believe,” “estimate,” “intend,” “plan,” “project,” and similar expressions also identify forward-looking statements. Forward-looking statements include statements regarding store openings in Canada and across North America, and growing sales to two billion dollars by 2023.

Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause the company’s actual results to differ materially from those in the forward-looking statements. Information regarding factors that could cause results to differ can be found in the company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 16, 2021, as well as the company’s subsequent filings with the Securities and Exchange Commission. These forward-looking statements are based on information as of April 20, 2021. The company assumes no obligation to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.

About Athleta:

A certified B Corporation, Athleta is a performance lifestyle brand with a mission of empowering a community of active women and girls. Athleta’s versatile premium performance lifestyle apparel is designed by women for women with inclusivity at its core. Founded in 1998, Athleta integrates performance and technical features across its collection to support women across their entire lifestyle – from yoga and training to travel and sleep. In 2016, the company launched Athleta Girl mirroring its signature performance in styles for the next generation. Based in San Francisco, CA and a Gap Inc. brand (NYSE: GPS), Athleta apparel is available at its over 200 retail stores across the United States, through its catalog, and at Athleta.com.

About Gap Inc.

Gap Inc., a collection of purpose-led lifestyle brands, is the largest American specialty apparel company offering clothing, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, Athleta, and Intermix brands. The company uses omni-channel capabilities to bridge the digital world and physical stores to further enhance its shopping experience. Gap Inc. is guided by its purpose, Inclusive, by Design, and takes pride in creating products and experiences its customers love while doing right by its employees, communities, and planet. Gap Inc. products are available for purchase worldwide through company-operated stores, franchise stores, and e-commerce sites. Fiscal year 2020 net sales were $13.8 billion. For more information, please visit www.gapinc.com.

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