Gap Closes 2018 With Plan To Spin Off Old Navy and Reduce Gap Brand Footprint; Shares Fairly Valued
No-moat Gap ended 2018 on a mixed note with Old Navy continuing to outperform the company average while Gap lagged. For the year, sales grew 4.5% on 38.1% gross and 8.2% operating margins behind our estimates of 6% sales growth on 38.4% gross and 8.5% operating margins. Headlining the quarter were the firm’s strategic initiatives of spinning off the Old Navy business (47% of 2018 revenue) by 2020 and restructuring the Gap segment by closing 230 stores (19% of the 2018 store base) over the next t...The Gap is an apparel retail company. The company provides apparel, accessories, and personal care products for men, women, and children under the Old Navy, Gap, Banana Republic, Athleta, Intermix, and Hill City brands. The company has stores in the U.S., Canada, the U.K., France, Ireland, Japan, Italy, China, Hong Kong, Taiwan, and Mexico, and has franchise agreements with unaffiliated franchisees to operate Old Navy, Gap, and Banana Republic stores throughout Asia, Europe, Latin America, the Middle East, and Africa. Under these agreements, third parties operate stores that sell apparel and related products under the company's brand names.
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Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.
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