It is almost as non-sensical as their love for US airplane stocks or every biotech company that has "found" the cure to cancer.
Gap is incredibly dated and only does 7% of their business online. It's a dinosaur compared to the likes of Amazon. Moreover, closing 1/3 of your stores will not increase company worth, it's simple macro-economics. Anyone not expecting a 10-15% dip in stock value in the next 6 months is living in bizzaro world.
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What a clueless organization. Just when you think they can't get any worse, they go ahead and pull this.
Sentiment: Strong Sell
if for some reason I want some denim from the 90s I'm going somewhere else, the old dude offended me. death spiral seems appropriate here
GAP announces store closings and laying off headquarters employees (sounds like a familiar tune). Stock spikes up after hours. Really? The next thing you know the 1% will stop paying taxes on their swimming pools (ala Greece). I'm sure Jeb Bush can make that happen with his tax reforms. Really?
Just bend over and grab yer ankles Greece will give you a lesson. Just too much to believe :-)
this was a legend of the American clothing retailer cos, but thing have changed over the years as the visionary Donald fisher has been long gone.
Gap's name brand causes confusion amongst the millenials with their stores named with the brand of clothes, I only go there to buy cheap gift clothes, but now personally I would buy a tshirt or item from H&M.
The closing of stores is the first sign of troubles. Once people see that, even more they don't want to associate with wearing the brand. I would be on the short side of this equation because it is an uphill battle from here.
Remember, less stores, mean less gift cards given away since less places for the recipients to buy from
GPS is ripe for a new short position, close that many stores and maybe your comps go up, but your revenue plummets... expect a massive top-line miss next quarter, sell the rips here, and short with malice.