Weak Sales Could Dampen View of Gap
Trefis submits:
Gap ( GPS ) is a global specialty retailer that operates the Gap and Old Navy brands and competes with retailers such as Aeropostale ( ARO ), American Eagle ( AEO ), Abercrombie & Fitch ( ANF ) and Urban Outfitters ( URBN ). We estimate that Gap and Old Navy stores each constitute roughly 27% and 26% of our $35.51 our price estimate for Gap’s stock, which is around 50% above the market price. Banana Republic stores add an additional 17% while Internet orders & franchise business constitute 22%.
Slow Start to 2011
Though Gap did well for the full year 2010, it particularly struggled in January and February this year. In January, the YoY comparable store sales for Gap were flat while that for Old Navy dropped 3% in North America. For the full fiscal year 2010, company-wide net sales grew 3% with comparable store sales up 1%. [1]
In February, company net sales were down 2% while Complete Story »
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