GAP

GAP

Consumer


Presented:05/31/2024
Price:$28.96
Cap:$10.82B
Current Price:$21.63
Cap:$8.14B

Presented

Date05/31/2024
Price$28.96
Market Cap$10.82B
Ent Value$12.04B
P/E Ratio16.16x
Book Value$7.22
Div Yield2.07%
Shares O/S373.51M
Ave Daily Vol9,505,727
Short Int17.67%

Current

Price$21.63
Market Cap$8.14B
Gap, Inc. operates as a global apparel retail company, which offers clothing, apparel, accessories, and personal care products for men, women, and children. The firm operates through the following segments: Gap Global, Old Navy Global, Banana Republic Global, Athleta, and Other. The Gap Global segment includes apparel and accessories for men and women under the Gap brand, along with the GapKids, BabyGap, GapMaternity, GapBody, and GapFit collections. The Old Navy Global segment offers clothing and accessories for adults and children. The Banana Republic Global segment provides clothing, eyewear, jewelry, shoes, handbags, and fragrances. The Athleta segment offers fitness apparel for women. The company founded by Donald G. Fisher and Doris F. Fisher in July 1969 and is headquartered in San Francisco, CA.

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: Abercrombie & Fitch Co (ANF), American Eagle Outfitters Inc (AEO), Gap Inc/The (GPS)

Highlights

The presenter is short shares of The Gap Inc (GPS) as he believes the company is overvalued based on current earnings being at or near peak. Its brands are ceding market share and cost cutting opportunities seem limited. The presenter models $1.80 - $1.90 of EPS this year, which he views as peak earnings. At the current $28 share price, the stock trades at 15x his peak earnings number, and he sees 35% downside within a year as the multiple contracts to reflect the tougher outlook. There could be incremental downside over the next couple years based on a normalized 10x on $1.50 of EPS.

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Idea Discussion

Commentor 1 - 2 weeks ago

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