Gap lost $300 million in sales because it didn't have all its merchandise in stores in time for the holiday season.

Gap lost $300 million in sales it would have had this holiday season due to pandemic-related factory closures and delays at shipping ports that resulted in merchandise not reaching stores on time.

“While we had planned for the known supply chain restrictions … the impact on our business persisted longer than anticipated as weeks turned into months,” Gap chief executive Sonia Syngal said Tuesday, according to CNN.

Gap shares fell 21% on Wednesday on the news.

Syngal said factories in Vietnam that produce clothing and shoes for Gap were closed for several weeks over the summer due to a second wave of a coronavirus outbreak in that country. Up to 30% of Gap's production takes place in Vietnam.

“The two and a half month shutdown of our main manufacturing country, Vietnam, as well as port congestion affected our ability to fully meet strong customer demand,” Syngal said.

Gap lost $0 million in sales for not having all of its merchandise in stores in time for the holiday season

Gap Inc., the corporation that operates Gap, Old Navy, Banana Republic and Athleta stores, said it now also expects to lose $250 million to $350 million in sales in the fourth quarter due to supply chain disruptions.

Old Navy, which is one of its best-performing brands in terms of sales, was hit hardest by the Vietnam factory closures, particularly its women's products, Syngal said.

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Gap has taken steps to mitigate holiday product delays, including spending $350 million to airfreight 35% of this year's holiday merchandise. It also, where possible, shipped some inventory to east coast ports to avoid congestion at west coast ports.