The Gap, Inc. (GPS)
A global specialty retailer operating retail & outlet stores selling casual apparel, accessories, and personal care products for men, women & children under the Gap, Old Navy, Banana Republic, and Piperlime brands.
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Due to hi competition in the retail business.
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Honestly, terrible customer service, I have no idea why people continue to shop these stores. Staff unfriendly, products disorganized, and by far one of the worst websites known to mankind. Add to that a process for merchandise retun that is in complete disarray.
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If you want to look like you buy your clothes at Goodwill, you may as well just go to Goodwill and save some money.
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In the smallest of economic downturns, Gap will be one of the first ones to fall. Their prices are absolutely ridiculous and for no reason. People have less money, and they don't have the money anymore to spend on that $70 top. Gap will have their lunch eaten by cheaper retailers like JCPenney easily. Old Navy is their only hope of success at the moment, and even they're going out of style.
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GAP IS TO COMING THE WHOLE COMPANY BECAUSE OLD NAVY CLOTHING ARE NOT SELLING BANANA REPUBLIC IS DOING OK AND GAP COULD DO BETTER
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Slight upswing in fall, but not enough
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Quarterly same-store sales have been negative for the past 15 consecutive quarters. The slow economy has hurt virtually all of their brands, even Old Navy which is usually perceived as the value brand.
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In the current climate the share overvalues the company. We're not going to see retail outperform and the good ones will struggle to stand still. On that basis the share has recovery priced into it and no chance of that
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too expensive for what it actually is. in these times people will go to Target and WalMart before they'd go to the Gap.
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They can't keep their stores clean. The dust and sloppy merchandising is terrible. Management is keeping up the bottom line at the expense of the stores. That is why same store sales are in a death spiral. All retailer rot before they die. A&P and Wards both did the same thing let the stores go to get short term profit.
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This pick is simple... this is the worst clothing store out of all the clothing stores available to pick from. This company will eventually bankrupt given enough time.
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Money is tight. People will not want to waste theirs on GAP which sells mediocre clothing (not the best fabric, not the most stylish designs, not the best fit) at comparatively high prices. I would rather take my money to a store like H&M that screams high-end clothing at value prices than the GAP which has fallen so far back it can't even be helped by multi-million dollar Sarah Jessica Parker ad campaigns.
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Stimulus is going in the gas tank.
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Trendy clothes vs. Food and Gas?
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I'm just shorting this one because I think it's funny that theres about another 10 underperform pitches on it over at ticker symbol GAP
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recession discretion
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Get ready for a recession. GPS isn't going to go BK, but its stock and retail in general is going to be hit very very hard.
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slight underperform. will probably close this out after a few months.
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I dunno what allure gap had before, but it sure doesnt have it now. SHORT!

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