GAP

Gap, Inc.

Consumer


Presented:06/24/2015
Price:$38.76
Cap:N/A
Current Price:$21.63
Cap:$8.14B

Presented

Date06/24/2015
Price$38.76
Market CapN/A
Ent Value$16.60B
P/E Ratio13.6x
Book Value$6.87
Div Yield2.37%
Shares O/S417.36M
Ave Daily Vol3
Short Int5.92%

Current

Price$21.63
Market Cap$8.14B
The Gap, Inc. operates as an apparel retail company worldwide. It offers apparel, accessories, and personal care products for men, women, and children under the Gap, Banana Republic, Old Navy, Athleta, and Intermix brand names. The company provides apparel, handbags, shoes, jewelry, personal care products, and eyewear for men and women; and performance and lifestyle apparel for use in yoga, strength training, and running, as well as seasonal sports, including skiing and tennis. It offers its products through company-operated stores, franchise stores, Websites, e-commerce and social sites, and catalogs. The company has franchise agreements with unaffiliated franchisees to operate Gap, Banana Republic, and Old Navy stores in Asia, Australia, Europe, Latin America, the Middle East, and Africa. As of January 31, 2015, it operated 3,280 company-operated stores. The company was founded in 1969 and is headquartered in San Francisco, California.

Please note, on 08/22/24 The Gap, Inc. changed its ticker to GAP. The content of this idea may make reference to the original ticker symbol, GPS.
Publicly traded companies mentioned herein: The Gap Inc (GPS), Hennes & Mauritz AB (HMB SS), Lululemon Athletica Inc (LULU)

Highlights

The presenter is long shares of The Gap (GPS) and sees the timing and risk/ reward setup as attractive with shares trading at ~$39 and a new, focused CEO (Art Peck) invoking change. Generally speaking, he believes that consumers and investors view the Gap [proper] brand as “diseased”, which in part explains the low market multiple shares trade at (14x and 12.5x consensus 2016/ 2017 EPS estimates, respectively). With Peck leading the company, low expectations for the remainder of 2015, Old Navy and Athleta performing well, and a capital allocation story protecting downside, the presenter sees the potential for the stock to appreciate meaningfully over the next 12-18 months.

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Idea Discussion

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