The Gap Inc.
offer a wide variety of men’s and women’s casual clothing (T-shirts, jeans, khakis). The
company’s other chains include Banana Republic, GapKids, babyGap, and its fastest
growing, Old Navy. Each chain also has an online incarnation. The Gap is adding
GapBody intimate apparel stores and restaurants in flagship Old Navy stores. All Gap
clothing is private-label merchandise made specifically for the company. The founding
Considering that Gap is a designer brand, its competitors would also be designer names
Gap and its subsidiaries make up some 5% of all the clothes bought in the United States
and it goes on to say that eventually that number will jump to 8%. For right now,
however, the Gap is going through some tough times. The San-Francisco based company
missed its earnings projections for both the first and second quarters this year and scaled
to go down 52% to date. Dan Prislin, the CEO, ?These are growing pain, not red flags.?
Most all of the damage is coming at the expense of Old Navy. It has been labeled,
capitalize on the huge business-casual trend. Old Navy, which is gearing up to reach out
will have added up 700 new locations.
The article offers one piece of advice, that the stock is extremely cheap right now, and
if you are willing to hang in there through this little rough spot for Gap it will one day the
returns will be great. So don?t give up on the Gap.