The company faced headwinds with supply chain issues weighing heavily on its performance in 2021, particularly driven by longer transit times from the West Coast port delays and the sudden and prolonged closure of factories in Vietnam. We expect inflationary headwinds, sluggish sales of Gap products in China, and size and assortment problems to continue to negatively impact the company’s second-quarter results. While higher end brands Banana Republic and Athleta saw y-o-y increases in net sales, management cited inflationary pressures as a reason for Old Navy and Gap’s struggles.